Giant German Automakers Facing 25% US Tariffs on it Cars
$VLKAY, $BMWYY, $POAHY, $DDAIF
European auto stocks extended losses on Tuesday after a German magazine reported that US President Donald Trump could impose tariffs on imported EU cars starting next week.
Wirtschaftswoche cited “EU sources” as saying a US Department of Commerce investigation report was on President Trump’s desk, adding: “President Trump will possibly decide on tariffs as early as next week after the G-20 meeting in Buenos Aires.”
It cited the sources as saying the report recommended a 25% customs duty on car imports from all countries except Canada and Mexico.
However, the White House has repeatedly pledged not to move forward with imposing tariffs on the European Union or Japan as long as it is making constructive progress in trade talks, which are under way but moving slowly
The European Commission, which oversees trade policy for the 28-member European Union bloc, declined to comment on the report in general, but did say that Wirtschaftwoche’s reference to EU Trade Commissioner Cecilia Malmstrom heading to Washington Wednesday was not correct.
White House nor the US Commerce Department has responded to a request for comment.
The Commerce Department has not publicly released any findings from its investigation into whether imported autos and parts pose a national security risk. The department submitted its recommendations earlier this month to the White House, it so far has not acted.
President Trump could take weeks or month to decide.
Once he makes his decision, the White House has 15 days to impose the new tariffs
Shares in VW (VLKAY) widened losses and were trading 4.1% lower. BMW (BMWYY) shares were down 1.4% Daimler (DDAIF) shares were down 2.4% on the day.