Mercedes, BMW, VW in Freefall: Trump’s Greenland Ultimatum Sparks Market Rout
European automakers saw a sharp decline following US President Donald Trump's threat to raise tariffs once more in the Greenland standoff.
Quick overview
- European automakers experienced significant stock declines following President Trump's tariff threat related to the Greenland standoff.
- Shares of Mercedes-Benz, BMW, and Volkswagen dropped between 5.4% and 7% early Monday in Frankfurt.
- Trump announced plans to impose additional import duties of 10% in February, increasing to 25% in June, affecting major markets like Germany and France.
- Current tariffs of 15% on vehicles and parts from the EU are already straining automakers, leading to profit warnings last year.
European automakers saw a sharp decline following US President Donald Trump’s threat to raise tariffs once more in the Greenland standoff.
Early on Monday in Frankfurt, shares of Mercedes-Benz AG dropped as much as 6.7%, BMW AG dropped as much as 7%, and Volkswagen AG dropped as much as 5.4%. Trump surprised several European nations over the weekend by announcing plans to impose additional import duties of 10 percent starting in February and increasing to 25 percent in June.
These countries included Germany and France. The US is a significant source of sales and profits for Mercedes, Volkswagen, and BMW. Trump’s tariffs, which are currently set at 15% for the majority of vehicles and parts imported from the European Union, are already putting pressure on automakers that import models like the S-Class to the US.
Last year, the president’s additional duties, which increased from about 2.5 percent, rocked the auto industry and caused automakers to issue profit warnings.
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