German auto shares seen lower after Trump announces 25% tariffs
BERLIN (Reuters) - Shares in some German automakers and suppliers were indicated lower in pre-market trade on Thursday after U.S. President Donald announced 25% tariffs on imported vehicles, a move that threatens to hurt Germany’s already struggling auto industry.
Shares in BMW (ETR:BMWG) were seen 2.3% lower and Daimler (OTC:MBGAF) Truck 1.9% lower, according to Lang & Schwarz pre-market data. Shares in parts supplier Continental were seen 3.9% lower
Germany’s VDA car lobby slammed the new levies as a "fatal signal" for free, rules-based trade, warning that it would harm companies as well as global supply chains.
"The German automotive industry is calling for immediate negotiations between the US and the EU on a bilateral agreement," VDA president Hildegard Mueller said in a statement.
Still, research by the IfW economic institute found that Germany would not be the hardest-hit, the FAZ newspaper reported.
The institute estimates that German gross domestic product will be 0.18% weaker in the first year after the introduction of the tariffs in real terms, compared with -1.81% in Mexico and -0.6% in Canada.
"Overall, the export losses are limited, as cars are often produced close to the sales market," IfW trade economist Julian Hinz said in comments carried by FAZ.
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