European automakers fall as Trump pledges tariffs

LONDON (Reuters) – European automakers shares fell in early trading on Tuesday, as traders reacted to President-elect Donald Trump pledging big tariffs on Canada, Mexico and China, news that fueled jitters over a potential global trade war.

A basket of European auto stocks was the worst performer among sectors shortly after the open, down 1.5% versus a 0.7% fall in the broader .

Shares in Germany’s Volkswagen (ETR:) were down 2.1%, while Stellantis (NYSE:) was the biggest faller, off 3.3% just after 0800 GMT.

French car parts maker Valeo (EPA:) also dropped 2.4%, while German luxury brand BMW (ETR:) fell 1.7%. Daimler (OTC:) Truck was down 3.6%.

(This story has been refiled to read ‘European’ in the headline)