From Yahoo Finance: 2025-03-27 01:35:00

Investors are watching European auto stocks closely after Trump’s announcement of duties on imported cars and light trucks. German automakers like Mercedes Benz, BMW, and Porsche are expected to face pressure. Volkswagen is particularly vulnerable with 43% of its U.S. sales from Mexico.

Europe’s carmakers exported around 800,000 vehicles to the United States last year, while the U.S. only exported a quarter of that to Europe. Chrysler parent Stellantis and Volvo Cars are also in focus. Market moves in Asia were subdued, with futures pointing to a lower open in Europe.

The specter of a trade war looms large, making investors skittish. The European Commission plans to assess Trump’s tariffs and seek negotiated solutions. The auto tariffs could increase the cost of an average U.S. vehicle purchase by thousands of dollars, impacting nearly half of all cars sold in the U.S. that were imported.

Investors will be closely monitoring reciprocal tariffs expected to be announced next week. Trump hinted that the measures may not be the like-for-like levies he previously mentioned. The focus remains on how markets will react to ongoing trade tensions and potential further escalations.

Read more: Das auto caught in the tariff crosshairs