Trump issues another tariff threat, European automaker stocks plummet

BlockBeats News, January 19 — The Greenland issue continues to escalate, with U.S. President Trump threatening to once again raise tariffs on European goods, causing European automaker stocks to plummet. On Monday morning, Mercedes-Benz Group’s stock in Frankfurt dropped as much as 6.7%, BMW Group fell 7%, and Volkswagen Group declined 5.4%. Over the weekend, Trump suddenly announced plans to impose an additional 10% tariff on imports from several European countries starting February, rising to 25% in June, catching many European countries including Germany and France off guard.

BMW, Mercedes-Benz, and Volkswagen all rely heavily on the U.S. market as their main source of revenue and profit. These automakers, which import models like the S-Class from the U.S., have already been impacted by Trump’s tariff policies. Currently, the U.S. imposes a 15% tariff on most vehicles and parts imported from the EU. Last year, Trump’s implementation of additional tariffs significantly increased this rate from around 2.5%, triggering profit warnings from automakers. (Jin10)