Categories Other Industries

German automobile shares tank on US tariff fears

Brace yourselves, for your dream of that German supercar just got dearer. The shares of German autogiants Daimler, BMW, and Volkswagen slid after a US warning to possibly introduce vehicle import tariffs. The three European carmakers jointly make up at least 90% of the premium car market in North America.

According to reports, the US government said on Wednesday that it is investigating various accusations that the car-truck imports have allegedly damaged the US automobile industry. Citing that this could result in imposing tariffs quite similar to the steel and aluminum ones in March, Daimler (DAIGn:Frankfurt) and BMW (BMWG:Frankfurt) fell at least 3% in early trading on Thursday. Volkswagen (VOWG_p.Frankfurt) shares dipped as much as 2.5%.

The impending threat of more tariffs seems to be another feather in the cap for US President Donald Trump, as tensions rise internationally fearing an all-out trade war.

Shares of German car gaints slide on US tariff fears
The BMW 507 was driven by US musician Elvis Presley while serving in Germany (Credit: BMW Global)

Maker of many a James Bond car, BMW, brought out a statement condemning the move, stating that the company is “committed to free trade worldwide.” The 507 driven by US music legend Elvis Presley during his military service in Germany was also a BMW.

“Barrier-free access to markets is, therefore, a key factor not only for our business model,” the Munich-based international giant said, “but also for growth welfare and employment throughout the global economy.”

The company has its biggest factory in the world in the US – in Spartanburg, South Carolina. It is also the largest automobile exporter, in regards to export goods value. French car giant PSA Group (PEUP:Paris), which recently acquired Opel from General Motors (GM), was also among the companies that saw shares dip as a result of the US move.

Most Popular

Aurora Cannabis (ACB) Earnings: 3Q21 Key Numbers

Aurora Cannabis Inc. (NYSE: ACB) reported third quarter 2021 earnings results today. Total revenues fell 25% year-over-year to CAD55.1 million. Adjusted EBITDA loss amounted to CAD24 million. Cash balance as

Walt Disney (DIS) Q2 revenue down 13%; earnings beat estimates

Media behemoth The Walt Disney Company (NYSE: DIS) reported second-quarter revenues that declined from last year as customers stayed away from theatres and parks due to pandemic-related safety issues and

Three key factors that bode well for Tattooed Chef (TTCF) going forward

Shares of Tattooed Chef Inc. (NASDAQ: TTCF) have gained 57% over the past 12 months but has dropped 25% since the start of this year. The sentiment on the stock

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top