Carmakers lead to European stock decreases on Thursday after US weakened President Donald Trump to slap 25 percent tariffs from European Union.
Wide stoxx Europe 600 falls 0.6 percent of early trading while Blue-chip in Germany in Germany, which includes many major exporters, fell by 1 percent.
Trump makes the threat last Wednesday at the first meeting of his cabinet since he took office last month, saying EU “formed to screw the United States”.
“We made a decision and we will announce it soon,” Trump said when his plans were asked for the EU tariffs. “It’s 25 percent usually speaks, and that’s in cars and all things.”
Volkswagen by Germany Volkswagen and Mercedes-Benz both falls 2 percent, while Porsche lost 2.3 percent. The listed carmaker listed Stellantis fell to 2.3 percent.
European stocks climbed this year in part because the region has now avoided the worst case of trading warship.
“The latest tariff headings is a reality check for the autos sector and the wider EU market,” said Emmanuel Cau, an analyst of barclays.
This is an emerging story