{"id":36393,"title":"German Car Industry Shares Plummet as Trump Victory Sparks Tariff Fears","publisher":"Stockmark.IT","author":"Stockmark.IT Website","published":"2024-11-07T06:18:47+00:00","modified":"2024-11-07T06:18:47+00:00","canonical_url":"https://stockmark.it/german-car-industry-shares-plummet-as-trump-victory-sparks-tariff-fears/","markdown_url":"https://stockmark.it/german-car-industry-shares-plummet-as-trump-victory-sparks-tariff-fears.md","json_url":"https://stockmark.it/german-car-industry-shares-plummet-as-trump-victory-sparks-tariff-fears.json","category":"Automotive","categories":["Automotive","Global Trade","Stockmarket"],"featured_image":"https://i0.wp.com/stockmark.it/wp-content/uploads/2023/01/car-st.jpg?fit=800%2C400&quality=89&ssl=1","format":"news","language":"en-GB","content":"German automotive manufacturers witnessed a significant market downturn today as Donald Trump’s presidential victory fuelled concerns over potential steep tariffs on European vehicles. Share prices for major German automakers experienced sharp declines, with BMW dropping 6.6%, Mercedes-Benz falling 6.4%, Porsche declining 4.9%, and Volkswagen sliding 4.3%.\n\nThe president-elect’s campaign promises to impose a 10% tariff on non-US goods have sent shockwaves through the European automotive sector. Trump’s recent statement at a Georgia rally emphasised his intention to push German manufacturers to establish plants within American borders, declaring, “I want German car companies to become American car companies.”\n\nThis political shift comes at a particularly challenging time for German manufacturers, who are already grappling with declining sales and diminishing profits. BMW recently reported a staggering 79% drop in quarterly profits to €838m, compared to over €4bn in the previous year. The luxury carmaker’s sales declined by 13% to 540,000 units, with the Chinese market showing particular weakness.\n\nUS automotive companies appear poised to benefit from Trump’s protectionist policies, with General Motors and Ford seeing pre-market trading gains of 4%. Tesla shares surged 13%, likely bolstered by CEO Elon Musk’s vocal support for Trump throughout the campaign period.\n\nThe European automotive sector faces mounting pressure as it navigates multiple challenges, including the costly transition to electric vehicles, weakening demand in key markets, and now the looming threat of increased trade barriers. These developments could significantly impact the EU’s machinery and vehicle exports, for which the US represents the largest market."}