President Trump announced that tariffs would be imposed on the European Union. Following Trump’s announcement, leading automotive companies experienced sharp declines in their shares. President Donald Trump’s declaration of additional customs tariffs for the European Union (EU) led to a drop in shares of Europe’s largest car manufacturers. Trump’s move to impose comprehensive customs tariffs on goods from Canada, Mexico, and China created pressure on the shares of car manufacturers in Europe. The automotive and parts index in Europe Stoxx 600 fell by 4.1%, hitting the lowest level in two weeks. Shares of European manufacturers Volkswagen, Volvo Cars, Daimler Truck, Porsche, and BMW plummeted by more than 5%, while French automotive parts supplier Valeo saw its shares drop by around 8%. Additionally, the trading war fears caused the German Dax 40 index to halt its recent quest for new records. The index lost roughly 2% in the morning hours. Tariffs to be Imposed on the European Union Trump fulfilled his campaign promises about imposing tariffs on products imported from Canada, Mexico, and China. With the decree signed by President Trump, a 25% additional customs duty was levied on imports from Canada and Mexico, while a 10% additional customs duty was imposed on imports from China. Trump stated that they would also impose tariffs on the EU, saying, “The European Union has crossed the line. We’ll see what happens, but I can say definitively that tariffs will be applied to the European Union. They have taken advantage of us, and we have a trade deficit of over $300 billion.” Analysts believe that the revenues of the German manufacturer Volkswagen, around 8 billion euros, and Stellantis, around 16 billion euros, will be affected by Trump’s tariffs.