The logo of the German car manufacturer Volkswagen can be seen on a vehicle in front of a VW dealership.
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Shares of some of Europe’s biggest carmakers fell sharply on Monday morning, following U.S. President Donald Trump’s pledge to impose tariffs on several European countries over Greenland.
Europe’s Stoxx Automobiles and Parts index traded 2.3% lower at around 8:18 a.m. London time (3:18 a.m.).
Germany’s Volkswagen, BMW, and Mercedes-Benz Group were trading between 2.5% to 4% lower shortly after the opening bell, while Milan-listed shares of Ferrari dipped around 2% in early deals.
Milan-listed shares of Stellantis, which owns household names including Jeep, Dodge, Fiat, Chrysler, and Peugeot, were last seen 2% lower.
The moves come shortly after Trump on Saturday pledged to impose 10% tariffs on the U.K., Denmark, Norway, Sweden, France, Germany, the Netherlands, and Finland by Feb. 1, ramping up his push to make Greenland, a self-governing Danish territory, part of the United States.
The levy on these countries will rise to 25% from June 1, Trump said.
European political leaders are expected to hold emergency talks over the coming days as they consider their response.
The automotive sector is widely regarded as acutely vulnerable to levies, particularly given the high globalization of supply chains and the heavy reliance on manufacturing operations across North America.
