Agency Report –
Frankfurt – Stocks in German carmakers tumbled in early trading on Monday amid fears of a looming trade war with the US, with shares of BMW, Mercedes-Benz and Volkswagen down between 5 and 7%.
Stocks in lorry makers Daimler Truck and Traton also dropped sharply, with shares of automotive suppliers including Continental and Knorr-Bremse down as well.
Far-reaching US tariffs on goods from Canada, Mexico and China have spooked investors, with stocks in German carmakers – who are heavily reliant on the US market – suffering badly on Monday.
Trump has said that tariffs on EU products would follow soon.
Germany’s major carmakers and many of their suppliers are particularly dependant on Mexico as a production location, which they also use to supply the US market.
Analyst Philippe Houchois from the investment bank Jefferies, however, believes that German manufacturers will be less affected by Trump’s tariffs than large US carmakers, predicting vehicle prices in the US and production costs will rise by an average of 6% if there is no rapid de-escalation.
Companies such as Volkswagen are at a comparatively lower risk due to their more global positioning, Houchois said, citing an earlier analysis.
Jose Asumendi, an analyst at JPMorgan, on the other hand, sees the biggest impact on Daimler Truck, Volkswagen, Traton and Stellantis.
