Shares in Germany's carmakers fell on Monday after US President Donald Trump threatened a 30% tariff on EU imports from August 1, with no mention of special treatment for cars, which remain subject to a 27.5% duty.
Trump on Saturday said he planned to impose a 30% tariff on imports from Mexico and the EU from August, increasing pressure on Brussels to scramble for a deal and avert a huge blow to the bloc's economy.
The 30% tariff applies “separate from all sectoral tariffs”, Trump wrote in a letter to European Commission President Ursula von der Leyen, implying the car tariffs that have been in effect since April would stand.
Shares in Volkswagen, BMW, Mercedes-Benz and Porsche were down 1.2% to 2% on Monday morning.
“The biggest problem with the tariff policy is the lack of a stable, predictable tariff framework,” said Pal Skirta, analyst at Metzler Equities.
“Without clear long-term rules, planning and operational management for highly globalised sectors — such as the automotive industry — become significantly more complex, let alone the additional financial burden imposed by the tariffs.”
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