Finance
European carmakers stocks fall after Trump's inauguration
Published by Global Banking and Finance Review
Posted on January 21, 2025
2 min readLast updated: January 27, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on January 21, 2025
2 min readLast updated: January 27, 2026
European carmakers' stocks fell as Trump considers tariffs, affecting companies like Stellantis and Volkswagen. BBVA also impacted due to the Mexican peso's decline.
MILAN (Reuters) - Shares in some big European carmakers fell sharply on Tuesday on uncertainty over possible new tariffs after Donald Trump took office as U.S. 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 Feb. 1 over illegal immigrants and fentanyl crossing into the United States.
European carmakers such as Stellantis and Volkswagen have facilities in Mexico which produce cars for the U.S. market.
Stellantis shares fell around 2% by 0813 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 United States was not yet ready for such a step.
A Volkswagen spokesperson said the group was concerned about the harmful economic impact that proposed U.S. tariffs will have on consumers and the automotive industry.
(Reporting by Danilo Masoni; editing by Dhara Ranasinghe)
The article discusses the decline in European carmakers' stocks due to potential tariffs considered by Trump after his inauguration.
European carmakers like Stellantis and Volkswagen are affected due to their production facilities in Mexico, which may face new tariffs.
BBVA's stock fell as the Mexican peso weakened, highlighting the bank's exposure to the Mexican market.
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