FRANKFURT (Reuters) – Shares in European carmakers and automotive suppliers fell sharply on Tuesday, after U.S. tariffs of 25% on imports from Mexico and Canada took effect.
The STOXX Europe 600 Automobiles and Parts index was down 3.1%, reflecting exposure to the tariffs as companies such as Volkswagen, Stellantis and BMW and Continental AG all have manufacturing sites in Mexico.
According to data from Mexico’s automotive industry association, Stellantis and the Volkswagen Group — which includes Audi — are the two biggest European exporters of light vehicles to North America out of Mexico.
“Trump is now getting serious with his punitive tariffs against Canada and Mexico … The geopolitical situation is more fragile than ever,” said investment strategist Juergen Molnar at brokerage RoboMarkets.
(Reporting by Christoph Steitz and Zuzanna Szymanska; Editing by Madeline Chambers)
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