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European auto stocks sink as U.S. tariffs on Mexico, Canada kick in

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Shares in European carmakers and automotive suppliers fell sharply on Tuesday, after U.S. tariffs of 25% took effect on imports from Canada as well as Mexico, a major automotive supply and manufacturing hub for global firms.
The article from Reuters discusses the significant drop in European auto stocks following the U.S. announcement of new tariffs on Mexican and Canadian vehicles starting in 2025. The U.S. decision to impose a 2.5% tariff on cars and a 25% tariff on trucks from these countries has raised concerns about potential retaliatory measures and the impact on global automotive trade. European carmakers like Volkswagen, Stellantis, and Renault saw their shares decline, with the sector facing increased uncertainty due to the possibility of similar tariffs being applied to European exports. The tariffs are part of the U.S. strategy to encourage domestic production under the new rules of the USMCA (United States-Mexico-Canada Agreement), which could disrupt established supply chains and affect the competitiveness of European manufacturers in North America.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/autos-transportation/european-auto-stocks-plunge-us-tariffs-mexico-canada-kick-2025-03-04/ ]