The European auto sector is in crisis — what is Trump's role
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On Tuesday, January 21, the shares of some major European automakers fell sharply. The reason was uncertainty about the possible introduction of new duties after Donald Trump took office as president of the United States.
This was reported by Reuters.
What caused the stock to fall
Trump did not immediately impose the previously promised tariffs, but said he was considering a 25% tariff on imports from Canada and Mexico starting February 1. He cited problems with illegal immigrants and fentanyl entering the US.
European automakers such as Stellantis and Volkswagen have factories in Mexico where they produce cars for the U.S. market.
Shares of Stellantis were down about 2% as of 10:13 Kyiv time, while the broader European auto sector lost about 1%, underperforming in a stable market.
German carmakers such as Volkswagen, BMW and Mercedes also saw their shares fall between 1.2% and 1.6%.
The threat of new tariffs also affected the Spanish bank BBVA, whose largest market is Mexico. The bank's shares fell 1.6% in Madrid as the Mexican peso fell more than 1% against the US dollar.
Highlighting the risks for European exporters, Trump also hinted at the possibility of imposing universal tariffs, but said the United States was not yet ready to take this step.
A Volkswagen spokesman said the company was concerned about the potentially harmful economic impact of the proposed tariffs on consumers and the automotive industry.
As a reminder, Donald Trump's inauguration speech disappointed the crypto community. There was not a single word about digital assets, which raised doubts about the support of the cryptocurrency market by the administration of the newly elected U.S. president.
We also wrote that investment trends in the financial markets have already been identified for 2025. Experts advise focusing on foreign currencies, gold, and the stock market.
