Shares in some big European carmakers fell sharply on Tuesday on uncertainty over possible new tariffs after Donald Trump took office as US president.
Trump did not immediately impose tariffs, as previously promised, but said he was thinking about imposing 25% duties on imports from Canada and Mexico on February 1 over illegal immigrants and fentanyl crossing into the US.
European carmakers such as Stellantis and Volkswagen have facilities in Mexico which produce cars for the US market.
Stellantis shares fell around 2% by 8,13 GMT, while the broader European auto sector was down around 1%, underperforming a steady market.
Germany's Volkswagen, BMW and Mercedes were down between 1.2% and 1.6%.
Tariff concerns also weighed on Spanish bank BBVA, which has Mexico as its biggest market. The stock fell 1.6% in Madrid as the Mexican peso weakened by more than 1% against the dollar.
Underscoring potential risks for European exporters, Trump also floated the idea of universal tariffs but said the US was not yet ready for such a step.
A Volkswagen spokesperson said the group was concerned about the harmful economic impact that proposed US tariffs will have on consumers and the automotive industry.
European carmakers’ stocks plunge after Trump’s inauguration
Shares in some big European carmakers fell sharply on Tuesday on uncertainty over possible new tariffs after Donald Trump took office as US president.
Trump did not immediately impose tariffs, as previously promised, but said he was thinking about imposing 25% duties on imports from Canada and Mexico on February 1 over illegal immigrants and fentanyl crossing into the US.
European carmakers such as Stellantis and Volkswagen have facilities in Mexico which produce cars for the US market.
Stellantis shares fell around 2% by 8,13 GMT, while the broader European auto sector was down around 1%, underperforming a steady market.
Germany's Volkswagen, BMW and Mercedes were down between 1.2% and 1.6%.
Tariff concerns also weighed on Spanish bank BBVA, which has Mexico as its biggest market. The stock fell 1.6% in Madrid as the Mexican peso weakened by more than 1% against the dollar.
Underscoring potential risks for European exporters, Trump also floated the idea of universal tariffs but said the US was not yet ready for such a step.
A Volkswagen spokesperson said the group was concerned about the harmful economic impact that proposed US tariffs will have on consumers and the automotive industry.