Trump’s Import Taxes Cause Automakers To Drop On Stock Exchanges

The tariffs are a further extension of the trade war Trump is waging with major US trading partners. Trump wants to use the tariffs to boost the domestic auto sector and force major automakers to move their production to the US.

BMW, Volkswagen, Mercedes-Benz, and Porsche fell by more than 4 percent in Frankfurt. In Paris, Stellantis lost 5 percent. Stellantis owns European car brands such as Opel, Peugeot, Fiat, Alfa Romeo, and Citroën and the American car brands Chrysler, Dodge, Jeep and Ram Trucks. German car parts maker Continental fell 2.6 percent and truck maker Daimler Truck lost 3 percent. The German car industry described the American tariffs as a “dire signal for free trade.”

The DAX in Frankfurt was down 1.5 percent shortly after the market opened due to the heavy losses in the automotive sector. The Paris Stock Exchange lost 1.1 percent and London lost 0.4 percent. The AEX index on the Damrak fell 0.5 percent to 912.72 points and the MidKap dropped 0.6 percent to 869.76 points.