(Update: Barclays comment and latest share prices)
FRANKFURT (dpa-AFX) - The risk of further U.S. import tariffs on goods from European NATO member states weighed on the shares of German automakers on Monday. Henning Cosman, an analyst at British bank Barclays, described U.S. President Donald Trump's threats in connection with the Greenland conflict as "disturbing rhetoric." While he was not surprised by geopolitical risks facing the auto industry, Cosman noted that the threat was now more tangible and arriving sooner than expected, even if there are agreements, delays, and/or exemptions.
He considers German carmakers Porsche AG, Mercedes-Benz, BMW, and VW to be the most affected by the current tariff risk. BMW shares, ending at the bottom of the DAX, fell 4.4 percent to €84.82, while in the MDAX, Porsche AG dropped 4.3 percent to €40.41, also closing as the worst performer.
Among other automakers, Mercedes-Benz declined by 3.4 percent to €56.80, VW lost 3.7 percent to €97.70, and shares in VW holding company Porsche SE dropped 4.0 percent to €36.01.
The European sector index simultaneously slumped to its lowest level since mid-October.
Shares of suppliers such as Continental, Infineon, and Aumovio also came under pressure on Monday, falling between 1.7 and 3.0 percent.
"U.S. President Donald Trump is once again wielding the tariff club, hitting Europe at a sensitive spot," wrote analyst Frank Sohlleder of broker Activtrades. Investors are likely to painfully recall early April 2025, when Trump unveiled his first tariff plans and the German benchmark DAX "plunged by a staggering more than 18 percent in no time at all." With diplomatic lines hardening in the political thriller over Greenland, it is to be expected that volatility on European stock markets is set to rise sharply./ck/bek/mis
