European automakers shares skid on ‘fear of retaliation’ from EU tariffs on China EVs
Shares of European automakers faced declines on Wednesday, with prominent brands like Volkswagen and BMW leading the drop amid fears of retaliation from the European Commission’s plans to impose tariffs on imported Chinese electric vehicles (EVs) from next month.
The European Commission will inform car makers that it is provisionally applying additional duties between 17 and 38 per cent on imported Chinese electric vehicles from next month, people familiar with the matter told Financial Times.
“The main factor is the imminent announcement of tariffs on EVs from China. Not the tariffs per se, but the likely retaliation from China.” Daniel Schwarz, analyst at Stifel, stated in a note.
The STOXX carmakers index fell by 1.4 percent, while Volkswagen and BMW, down by 2.3 per cent -2.4 per cent, were among the worst performers of Germany’s blue chip index.
Luxury German manufacturer Porsche Holding plunged by over 7 per cent as it traded ex-dividend.
Attribution: Reuters, The Financial Times
