Posts tagged: trump tariffs

BMW, which earlier Wednesday reported disappointing quarterly earnings, fell as much as 6.8 percent in Frankfurt. Porsche, maker of the 911 sports cars, fell to its lowest intraday price since the stock began trading more than two years ago.

Also read: Analysts reduce EV development expectations in America after Donald Trump's return

Additional tariffs would hurt German automakers, which ship more vehicles to the U.S. than any other country. The market is becoming increasingly attractive to them due to strong demand for large sport utility vehicles and a slower shift toward EVs than in Europe, allowing them to sell more of their higher-margin combustion-engine models.

During his campaign, Trump said he planned to impose tariffs on foreign-made cars shipped to the US to protect local jobs.

Mercedes-Benz Group AG declined 4.9 percent. Volkswagen AG fell as much as 4.4 percent.

Also read: Nissan cuts 9,000 jobs, halves CEO salary, here's why

German automakers operate several factories in the US where they produce cars for both local buyers and exports – meaning any European retaliatory measures could compound the damage from the trade dispute.

The conflict with the US would create another problem for the Germans, who already face stiff price competition in China and lower demand in Europe.

“Trump is pursuing a distinctly protectionist agenda that relies on higher import tariffs and more restrictions on international trade,” Clemens Fuest, president of Germany's Ifo economic research institute, said on Wednesday.

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First publication date: 08 November 2024, 09:39 am IST