US Tariffs on Imported Vehicles Threaten German Auto Industry; BMW, Daimler Truck, and Continental Shares Drop

Shares in German automakers and suppliers, including BMW, Daimler Truck, and Continental, experienced declines in pre-market trading following the announcement of 25% tariffs on imported vehicles by the U.S. President. The German automotive industry association, VDA, criticized the tariffs, calling them a "fatal signal" for free trade and warning of potential harm to companies and global supply chains. The VDA has urged immediate negotiations between the U.S. and the EU for a bilateral agreement. Research from the IfW economic institute suggests that while Germany will be affected, Mexico and Canada would face greater economic impact from the tariffs. The institute estimates a 0.18% decrease in German GDP in the first year after implementation, compared to 1.81% in Mexico and 0.6% in Canada.