Published by Global Banking & Finance Review®
Posted on February 27, 2025
1 min readLast updated: January 25, 2026
Add as preferred source on GoogleEuropean carmaker shares fell after Trump threatened a 25% tariff on EU cars, impacting major brands and the STOXX 600 index.
(Reuters) - Shares in some of the biggest European carmakers moved lower on Thursday after U.S. President Donald Trump floated a 25% "reciprocal" tariff on European cars and other goods.
Europe's automobiles and parts index retreated by 3.4% to two-week lows, falling the most among other sectoral indices on the region's STOXX 600 index, which slipped by 0.6%.
Trump, asked whether he has decided on a tariff rate for goods from the European Union, replied: "We have made a decision, and we'll be announcing it very soon, and it'll be 25%, generally speaking, and that'll be on cars, and all of the things."
Germany's Porsche, BMW, Volkswagen and Mercedes Benz all lost between 2.4% and 2.8% by 0902 GMT.
Volvo Cars was down 4.3%, while Stellantis slipped 2.4%.
(Reporting by Anna Pruchnicka, editing by Alun John)
Trump proposed a 25% 'reciprocal' tariff on European cars and other goods.
Shares in major European carmakers fell, with the automobiles and parts index retreating by 3.4%.
The article mentioned Germany's Porsche, BMW, Volkswagen, and Mercedes Benz, all of which lost between 2.4% and 2.8%.
The STOXX 600 index slipped by 0.6%, with the automobiles and parts index falling the most among sectoral indices.
Volvo Cars experienced a decline of 4.3% in shares.
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