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    Home»World Economy

    Carmakers lead European stocks lower after Donald Trump’s tariff warning

    Team_NewsStudyBy Team_NewsStudyFebruary 27, 2025 World Economy No Comments2 Mins Read
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    Roula Khalaf, Editor of the FT, selects her favorite tales on this weekly e-newsletter.

    Carmakers led a decline in European shares on Thursday after US President Donald Trump threatened to hit EU items with 25 per cent tariffs.

    The broad Stoxx Europe 600 fell 0.6 per cent in early buying and selling, whereas Germany’s blue-chip Dax index, which incorporates a number of large exporters, dropped 1 per cent.

    Trump made the threat on Wednesday in the course of the first assembly of his cupboard since he took workplace final month, saying the EU was “shaped to screw the USA”.

    “Now we have decided and we’ll be asserting it very quickly,” Trump mentioned when requested about his plans for EU tariffs. “It’ll be 25 per cent usually talking, and that will likely be on automobiles and all different issues.”

    Germany’s Volkswagen and Mercedes-Benz fell 2 per cent, whereas Porsche misplaced 2.3 per cent. Paris-listed carmaker Stellantis dropped 2.3 per cent.

    European stocks have climbed this yr partially as a result of the area has up to now prevented the worst-case commerce warfare situation.

    “The most recent tariffs headlines are a actuality verify for the autos sector and the broader EU market,” mentioned Emmanuel Cau, analyst at Barclays.



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