A sweeping new round of tariffs from President Trump has sent shockwaves through global markets, wiping billions of euros off the value of major European carmakers and dealing a fresh blow to the UK’s automotive sector.
Trump’s decision to impose a 25 per cent tariff on all imports of cars and parts into the US — set to take effect on 2 April — triggered sharp selloffs in global equities, with automakers bearing the brunt.
Shares in German giants Mercedes-Benz, BMW, Porsche and Volkswagen fell between 2 per cent and 5 per cent, while Stellantis — parent company of Vauxhall, Fiat, Citroen and Peugeot — dropped 6 per cent in Paris. In London, luxury carmaker Aston Martin fell 4.47 per cent, dragging the FTSE 100 index down 0.6 per cent to 8,638.04. Germany’s DAX lost 1.42 per cent and France’s CAC 40 slipped 1 per cent.
The fallout wasn’t limited to Europe. In after-hours US trading, General Motors fell 8 per cent and Ford 3.7 per cent. Asian markets followed suit, with Toyota, Nissan, Mazda, Hyundai and Kia all dropping, while Tata Motors — parent of Jaguar Land Rover — fell 5 per cent on India’s stock exchange.
The new tariffs threaten a vital lifeline for the UK automotive industry. The US is the UK’s second-largest car export market, accounting for nearly 17 per cent of total exports, or around 79,000 vehicles in 2024, according to the Society of Motor Manufacturers and Traders (SMMT). Exports to the US had surged by 38.5 per cent last year, even as exports to the EU and China declined sharply.
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