Shares in German carmakers fall after Trump tariff announcement
FRANKFURT/LONDON (Reuters) -Shares in Germany’s carmakers fell on Monday after U.S. President Donald Trump threatened a 30% tariff on EU imports from August 1, with no mention of special treatment for autos, 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 European Union from August, increasing pressure on Brussels to scramble for a deal and avert a massive 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 that the auto tariffs that have been in effect since April would stand.
Shares in Volkswagen (ETR:VOWG_p), BMW (ETR:BMWG), Mercedes-Benz (OTC:MBGAF) and Porsche were down 1.2% to 2% by 0737 GMT.
"In my view, the biggest problem with the current 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 themselves."
Shares of European spirits companies, many of which rely on the U.S. market, were mixed.
Diageo (LON:DGE), where sales of Canadian whisky and Mexican tequila drive its U.S. business, was 1% higher.
Rival Pernod Ricard (EPA:PERP), maker of Jameson Irish whiskey, was down 1%, while cognac maker Remy Cointreau (EPA:RCOP) dropped 2.4%
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