(Reuters) – Declines in auto stocks pushed European shares to a two-week low on Thursday after U.S. President Donald Trump announced plans to slap 25% import tariffs on all vehicles and foreign-made auto parts from next week.
The pan-European STOXX 600 was down 1% to hit its lowest point since March 14, as of 0806 GMT. The benchmark index for Germany, among the biggest auto suppliers of car and car parts to the United States, fell 1.4%.
Shares of Volkswagen, the most vulnerable among German carmakers to tariffs due to its large supply base in Mexico and lack of U.S. production for its Audi and Porsche brands, dropped 3.6%.
Chrysler parent Stellantis slumped 6.4%, BMW fell 3.9%, Porsche slid 4.2%, while Volvo Cars and car parts maker Continental shed about 2.5% each.
The STOXX 600 autos sector slumped more than 3.3%, on track to erase all of its gains seen this year.
Car industry stocks ranging from the U.S. to Asia were hit hard as the new levies could increase the cost of an average U.S. vehicle by thousands of dollars, given the intertwined manufacturing operations across Canada, Mexico and the United States.
Germany’s economy minister and its auto association slammed the newly announced U.S. tariffs, warning that they would harm both European and U.S. economies, and called for urgent negotiations to avert a spiralling trade war.
(Reporting by Medha Singh in Bengaluru; Editing by Sherry Jacob-Phillips)
