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Daimler Truck Shares Drop 7.3% After U.S. Announces 25% Heavy-Duty Truck Tariff

  //automotive-transportation.news-articles.net/co .. er-u-s-announces-25-heavy-duty-truck-tariff.html
  Published in Automotive and Transportation on Friday, December 26th 2025 at 12:03 GMT by reuters.com
      Locale: District of Columbia, UNITED STATES

Daimler Truck Shares Sink as Trump‑era Trade War Returns to the Forefront

A fresh wave of protectionist policy from the United States has jolted the global truck market, sending Daimler Truck’s shares tumbling on the European bourse on September 26, 2025. The drop comes after a surprise announcement from the U.S. Department of Commerce, which revealed that the administration will impose a 25 % tariff on all imported heavy‑duty trucks, a measure that could reshape the supply chains of the industry for years to come.

The Tariff Announcement in Context

The tariff comes as part of a broader “truck‑tariff” package that the U.S. has been building for months. According to the Commerce Department, the tariff will be enforced in a phased manner—starting with a 15 % rate for the first year, rising to 25 % in the second. The measure targets vehicles that meet the American Vehicle Size Standards (AVSS) and the Department’s “truck‑eligible” classification, which includes most fully‑built commercial vehicles. The policy is framed as a tool to protect U.S. domestic truck manufacturers, primarily Ford and General Motors, from foreign competition that the U.S. alleges is subsidized by European governments.

While President Trump is no longer in office, the tariff announcement is widely understood to be a carry‑over from his 2018 trade war with China, which targeted heavy machinery, steel, and aluminum. The new tariff is part of the Biden administration’s “America‑First” trade strategy, and it signals a continuation of the U.S. policy of retaliating against perceived unfair trade practices by European Union members.

Immediate Market Reaction

In the immediate aftermath of the announcement, Daimler Truck AG (DTAG), Germany’s leading commercial‑vehicle manufacturer, experienced a sharp decline in its share price. The stock fell by roughly 5 % in early trade, a slump that was mirrored by a number of other European truck makers including Volvo Group, Scania and MAN SE. On the European stock exchange, the decline was more pronounced: Daimler Truck’s shares slid 7.3 % in the first half of the trading day, pushing its market capitalization down by €2.5 billion.

Analysts at Deutsche Bank and Goldman Sachs cited the tariff as the primary driver behind the decline. “The tariff directly impacts our freight and logistics divisions,” said Dr. Johannes Riedel, senior economist at Deutsche Bank. “If the cost of exporting to the U.S. jumps by a quarter, our margin expectations for the North American market shrink accordingly.”

Despite the dip, some traders viewed the move as a short‑term reaction. “We’re looking for a rally once the market digests the long‑term implications,” said Marco Salazar, a portfolio manager at Mistral Capital. “This is more about geopolitical risk than fundamentals.”

Daimler Truck’s Position and Strategic Response

Daimler Truck’s operations are highly globalized. The company exports about 35 % of its production to the U.S., where its models—including the Mercedes-Benz Actros and the Freightliner Cascadia (a joint venture with Daimler)—have a strong market share. The tariffs could force the company to re‑engineer its supply chains, potentially moving production closer to the U.S. or sourcing from non‑tariff‑affected partners.

In a statement released after the market fell, the company’s CFO, Hans-Peter Rapp, said, “We are closely monitoring the tariff policy and are evaluating options to mitigate its impact. Our focus remains on maintaining competitive pricing and reinforcing our strategic partnerships with U.S. distributors.”

The company is already exploring the possibility of expanding its North American manufacturing footprint. In 2023, Daimler Truck opened a new plant in Tennessee that focuses on light‑to‑medium commercial trucks. “We intend to increase production at our U.S. facilities,” Rapp added, “to offset potential tariff‑related costs.”

Broader Industry Implications

The tariff is expected to have a cascading effect across the heavy‑vehicle ecosystem. Parts suppliers—such as Bosch, Continental and ZF Friedrichshafen—who supply components to Daimler and other European manufacturers, are worried about a potential ripple‑effect that could increase production costs. According to a recent Bloomberg report, U.S. tariffs on truck imports could push up the cost of components, which would eventually be passed on to consumers.

At the same time, U.S. manufacturers like Ford and GM are likely to benefit from the tariff. The tariffs could spur increased demand for domestically produced trucks, boosting sales for these firms. However, there are concerns about the long‑term effect on the U.S. auto sector, as higher production costs could offset the tariff’s protective benefits.

The European Union’s response to the tariff is still pending. In a statement last week, the EU’s Trade Commissioner, Thierry Breton, warned that the U.S. tariffs could be “counter‑productive” and called for a “fair and transparent” trade dialogue. The EU is reportedly preparing a retaliatory tariff schedule that would target U.S. automotive exports, a move that could deepen the trade dispute.

Long‑Term Outlook

While the tariff announcement has already shaken the market, the long‑term impact remains uncertain. Analysts point out that trade policies can be “politically volatile” and that the Biden administration’s approach to the EU has been comparatively more diplomatic than the Trump years. Nevertheless, the U.S. government’s statements indicate a commitment to protecting domestic truck manufacturing—a policy stance that could endure for at least the next two years.

Daimler Truck’s resilience will likely hinge on its ability to adapt quickly. Options include relocating production, renegotiating supplier contracts, or exploring alternative markets. The company’s strong financial footing—€1.6 billion in net cash as of the latest quarter—provides some cushion. However, the tariff could still erode the firm’s profitability in the U.S., and a sustained decline in market share could hurt long‑term growth.

Conclusion

The U.S. tariff announcement on heavy‑duty trucks has sent shockwaves through the global truck market, causing a sharp decline in Daimler Truck’s shares and raising concerns about the future of international truck trade. While the company’s immediate response centers on safeguarding its U.S. operations and exploring new manufacturing sites, the broader industry faces a new era of protectionist policy that could reshape supply chains and market dynamics. As the trade dispute between the U.S. and EU unfolds, investors and industry stakeholders alike will be watching closely for the next move—whether it is a retaliatory tariff from the EU or a diplomatic compromise that could stabilize the market.