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European Carmaker Shares Fall after Trump Imposes Tariffs

Feb 3 (Reuters) - Shares in some of the biggest European carmakers slumped on Monday after U.S. President Donald Trump imposed new tariffs of 25% on goods from Mexico and Canada and 10% on imports from China, raising concern over possible duties on EU imports too.

Volkswagen, BMW, Porsche, Volvo Cars, Stellantis, and truckmaker Daimler Truck all fell between around 5% and 6%. French car parts supplier Valeo slumped 8%.

Europe's automobiles and parts index fell 4.1% to more than two-week lows, leading losses among other sectoral indices on wider Europe's STOXX 600, which slipped 1.5%.

"We believe around 8 billion euros ($8.18 billion) of VW's revenues are impacted by tariffs and around 16 billion euros of Stellantis revenues," analysts at investment bank Stifel wrote in a note.

They estimated the full impact of tariffs at around 12% of Volkswagen's EBIT in 2025 and 40% of Stellantis'.

Volkswagen said on Sunday it was counting on talks to avoid trade conflict.

The tariffs are due to take effect 12:01 a.m. ET (0501 GMT) on Tuesday.

($1 = 0.9778 euros)

Reporting by Paolo Laudani, Isabel Demetz, Samuel Indyk and Anna Pruchnicka; Editing by Amanda Cooper

Source: Reuters


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