EU car manufacturers' stocks plummeted sharply after Trump's inauguration.
Shares of several major European car manufacturers have dropped significantly due to uncertainty over potential new tariffs following Donald Trump's inauguration as president of the United States.
According to Reuters, Trump will not impose tariffs immediately, as he previously promised, but stated that he is considering a 25% tariff on imports from Canada and Mexico starting February 1 due to illegal immigrants and fentanyl crossing the U.S. borders.
Stellantis and Volkswagen are European auto giants with factories in Mexico, where they produce cars for the American market.
Stellantis shares fell by 2%, while German manufacturers Volkswagen, BMW, and Mercedes experienced declines ranging from 1.2% to 1.6%.
The Mexican bank BBVA also expressed concern over the tariffs. The bank's shares in Madrid fell by 1.6% as the Mexican peso weakened against the dollar by more than 1%.
Trump noted that there are potential risks for European exporters and expressed the idea of universal tariffs, but at the same Time stated that the U.S. is not yet ready for such a step.
A Volkswagen representative stated that the company is concerned about the negative economic impact of the proposed American tariffs on consumers and the automotive industry.
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