Carmakers in Europe drop after 'hurricane-like' US tariffs

Shares in European carmakers drop after U.S. President Donald Trump said he would impose a 25% tariff on all vehicles and foreign-made auto parts imported into the United States from April 2

STOXX 600 autos & parts index .SXAP is down around 3% to its lowest since early December at 0803 GMT

Germany's Porsche AG P911_p.DE, Mercedes MBGn.DE, Volkswagen VOWG.DE, BMW BMWG.DE, Daimler Truck DTGGe.DE fall between around 3% and 5%

*Stellantis STLAM.MI drops 5.4% to its lowest since December 2020

Jefferies estimates the value of incremental duty at 2% of group revenue for BMW, 1% for Volkswagen and 10% for Porsche

If tariffs hold in their current form, they would be a "hurricane-like" headwind to foreign and many US automakers and could increase the average price of cars up $5,000 to $10,000, Wedbush analysts say

"(...) this initial 25% tariff on autos from outside the US is almost an untenable head scratching number for the US consumer", they add