BERLIN (Reuters) – Shares in some German automakers and suppliers were indicated lower in pre-market trade on Thursday after U.S. President Donald announced 25% tariffs on imported vehicles, a move that threatens to hurt Germany’s already struggling auto industry.
Shares in BMW were seen 2.3% lower and Daimler Truck 1.9% lower, according to Lang & Schwarz pre-market data. Shares in parts supplier Continental were seen 3.9% lower
Germany’s VDA car lobby slammed the new levies as a “fatal signal” for free, rules-based trade, warning that it would harm companies as well as global supply chains.
“The German automotive industry is calling for immediate negotiations between the US and the EU on a bilateral agreement,” VDA president Hildegard Mueller said in a statement.
Still, research by the IfW economic institute found that Germany would not be the hardest-hit, the FAZ newspaper reported.
The institute estimates that German gross domestic product will be 0.18% weaker in the first year after the introduction of the tariffs in real terms, compared with -1.81% in Mexico and -0.6% in Canada.
“Overall, the export losses are limited, as cars are often produced close to the sales market,” IfW trade economist Julian Hinz said in comments carried by FAZ.
(Reporting by Gdansk newsroom, writing by Rachel More in Berlin, editing by Thomas Seythal)
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