Shares of German auto giants fall due to Trump tariffs

Shares of leading European automakers fell by 5-7% on Monday, January 19, after statements by the US President Donald Trump on new tariffs. He plans to raise tariffs on imports from Europe to 10% in February, with a further increase to 25% in June. Analysts predict that these measures will cost German, British and Swedish automakers about $3.5 billion annually. About this reports Bloomberg.

Mercedes-Benz lost 6.7% of its value on the Frankfurt Stock Exchange, BMW lost 7%, Volkswagen lost 5.4%. Even Porsche, which has no production in the US, fell by 4.9%.

Trump last week announced new tariffs targeting several European countries, including Germany and France.

European manufacturers are already feeling the pressure from Trump's previous tariff decisions. Tariffs are currently 15% on most cars and parts from the European Union. The president sharply increased them from about 2.5% a year ago, prompting a wave of warnings of shrinking profits across the sector.

Michael Dean, an analyst at Bloomberg Intelligence, calculated the impact of the new taxes. He estimates that the underlying profits of German, British and Swedish automakers will be reduced by about 3 billion euros, or $3.5 billion, annually.

Tariffs aren't the industry's only problem. European automakers are grappling with falling sales in China and a slower-than-expected consumer shift to electric vehicles.

• January 17 Trump announced on the imposition of tariffs against American allies through Greenland. From February 1, 2026, Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland will be subject to a 10% tariff on all goods sent to the United States. On June 1, 2026, the tariff will be increased to 25%.