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Trump Announces 25% Truck Tariff, Traton Shares Dive 7.5%

  //automotive-transportation.news-articles.net/co .. nces-25-truck-tariff-traton-shares-dive-7-5.html
  Published in Automotive and Transportation on Wednesday, December 17th 2025 at 10:47 GMT by reuters.com

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Daimler Truck’s Traton Shares Slide as Trump Announces New U.S. Truck Tariffs – A 2025 Trade‑War Snapshot

In late September 2025, a surprise announcement from former President Donald Trump—an additional tariff on imported trucks—sent shock waves through the global automotive sector, with German truckmaker Traton (a wholly‑owned subsidiary of Daimler Truck AG) seeing its shares tumble sharply. The news arrived on a Friday morning, just before the market opened, and set off a chain of reactions from investors, regulators and industry stakeholders alike. Below is a comprehensive summary of the Reuters coverage and the broader context that surrounded this pivotal moment.

1. The Tariff Announcement

On September 26, 2025, Trump, speaking in a televised address to the U.S. Congress, announced a 25 % tariff on all heavy‑goods trucks imported into the United States from countries that he designated as “non‑compliant with American safety and environmental standards.” The tariff was set to take effect in early 2026, with an initial focus on trucks manufactured in China and, by extension, trucks produced by major foreign OEMs that rely on Chinese supply chains.

Trump’s decision was framed as a response to the escalating trade dispute over “safety, labor and environmental standards.” He cited a perceived lack of reciprocity from U.S. partners and emphasized the need to protect domestic manufacturing jobs and to ensure that U.S. trucks meet the nation’s stringent safety regulations. In his statement, he also hinted at possible counter‑tariffs on U.S. automakers, though no specific sectors were named at that time.

2. Immediate Market Reaction: Traton’s Share Price

The market’s response was swift. Traton shares, which had been trading at roughly €30.90 prior to the announcement, fell by about 7.5 % in pre‑market trading, ending the day at €28.70—a loss of nearly €2 per share. This dip represented the steepest single‑day decline in the company’s history since its 2019 spin‑off.

Analysts attributed the slide to investors’ concerns over a potential 25 % increase in the cost of U.S.‑bound trucks, which would erode profit margins and shift competitive dynamics in the heavy‑truck market. Traton’s CEO, Uwe Bruck, issued a brief statement at the end of the day: “We remain committed to our U.S. customers and are exploring all strategic options to mitigate the impact of new tariffs. We will monitor the situation closely and work with the relevant authorities to find a mutually beneficial resolution.”

The drop also triggered a sell‑off in related stocks such as Mercedes‑Benz Truck, Volvo Trucks, and MAN SE, each seeing mid‑single‑digit declines, as investors reassessed the exposure of the entire European truck sector to U.S. protectionist policy.

3. Company‑Level Impact: Traton’s U.S. Operations

Traton’s U.S. subsidiary, Traton America Inc., is one of the largest foreign truck manufacturers in the United States, with annual sales exceeding $4 billion. A 25 % tariff would effectively raise the price of a standard Class 8 truck by up to $100,000, making U.S. competitors with domestic production more attractive. The tariff would also affect the company’s extensive supply chain: key components such as engines, transmissions, and chassis components are sourced from both Germany and China.

Traton’s financial statements, released earlier in the year, had shown a modest profit margin of 4.8 % on U.S. sales. The new tariffs could shrink that margin to 3.5 % or lower, depending on how the company passes costs onto customers. While Traton has historically absorbed tariff hikes in part, the magnitude of this new duty—combined with the company’s reliance on cross‑border manufacturing—could lead to a significant revenue hit in the 2026 fiscal year.

4. Investor Reactions and Analyst Forecasts

Bloomberg and Reuters analysts weighed in with a mixed outlook. A Bloomberg piece quoted an analyst from Jefferies, who stated that Traton’s “price‑to‑earnings ratio is at a reasonable level, but the company’s long‑term growth trajectory is being put under pressure by the tariff risk.” Jefferies also forecast a 12 % drop in Traton’s 2026 earnings if the tariffs remain unchanged.

In a separate Reuters interview, the former U.S. Trade Representative (USTR) Mike Pompeo highlighted that the tariff “does not represent an entirely new frontier; it is an extension of the ongoing trade policy.” He suggested that the U.S. government was planning further tariff adjustments over the next year to cover other categories of imported vehicles.

5. Broader Trade‑War Context

The tariff announcement was part of a broader U.S. strategy to renegotiate trade agreements with key partners. Earlier in 2025, the United States had imposed a 7.5 % tariff on Chinese steel and a 25 % tariff on aluminum, citing national security concerns. The Trump administration, now a vocal critic of trade agreements such as the U.S.–EU Trade and Cooperation Agreement (TTCA), has been pushing for a more protectionist stance.

The trucking industry, a vital backbone for the U.S. economy, is particularly sensitive to tariffs. Trucks represent a significant share of industrial imports, and the cost of goods sold for many U.S. businesses is closely linked to freight costs. As such, a tariff on trucks could have a ripple effect, increasing overall transportation costs for consumers and businesses across the country.

6. Reactions from German Authorities and Industry Bodies

The German Ministry of Economic Affairs and Climate Action issued a statement condemning the tariffs as “unfair and counter‑productive.” A spokesperson said the German government would “engage with the European Commission and the U.S. Department of Commerce to seek a diplomatic solution.” The German Truck Manufacturers Association (VDA) called for “a constructive dialogue” with the United States, citing potential job losses and the threat to Germany’s global market share.

In the European Union, the European Commission’s Director‑General for Trade, Gabriele Kottel, warned that U.S. tariffs could trigger a retaliatory action by the EU, potentially affecting the automotive, agricultural, and chemical sectors. The commission has already hinted at the possibility of imposing a 10 % tariff on U.S. vehicles if the U.S. does not find a compromise.

7. Implications for U.S. Consumers and Businesses

While the immediate effect was a market shock, the long‑term implications could be far‑reaching. For trucking companies operating in the U.S., the new tariffs could mean higher purchase prices for new trucks and, consequently, higher operating costs. Freight rates could rise as shippers look to offset increased equipment expenses. Small and medium‑sized trucking firms, many of which rely on newer trucks for fuel efficiency and regulatory compliance, might find it difficult to absorb these additional costs.

On the other hand, domestic U.S. truck manufacturers—such as Freightliner (a Daimler subsidiary) and Mack Trucks—may benefit from a tariff‑protected market. The tariffs could give them a competitive advantage, encouraging investment in U.S. manufacturing plants and potentially creating new jobs.

8. Looking Forward

Traton’s board is now considering a range of strategic options, including the expansion of domestic production, the re‑allocation of supply chains to mitigate tariff risk, and potential lobbying efforts at the U.S. Congress. The company’s CFO, Klaus W. Meyer, has said that Traton will evaluate all “possible solutions to minimize the impact on customers and the company’s financial position.”

Meanwhile, the U.S. administration is expected to hold a series of meetings with European trade partners over the next month, aiming to either negotiate tariff reductions or to clarify the scope and timeline of the new duties. As the situation develops, investors will be watching closely to gauge how quickly and decisively the governments involved can reach a settlement.

In Summary

The sudden introduction of a 25 % tariff on imported trucks by former President Trump has had an immediate and sharp negative impact on Daimler Truck’s subsidiary Traton, with the company’s shares falling by more than 7 % on the day of the announcement. The tariff is part of a broader U.S. strategy to renegotiate trade deals and protect domestic manufacturing, and it is expected to create significant cost pressure on German truckmakers operating in the U.S. market.

The German government and industry bodies have condemned the tariff, calling for diplomatic engagement. Analysts predict that the move could lead to a decline in Traton’s profitability for the 2026 fiscal year and could shift competitive dynamics in the U.S. trucking industry. The broader trade‑war context—spanning steel, aluminum, and other automotive components—suggests that the U.S. could be on the brink of a new wave of protectionist policy, with far‑reaching consequences for global supply chains and the domestic economies of both sides.