Shares of most of Europe’s biggest automakers rallied Tuesday after diving the previous day when they reacted to President Donald Trump’s long-awaited campaign to use tariffs to restore fairness in global trading relations.
The calm would possibly have returned to automotive actions, however, when it is the turn of Europe to face the tariff consultation, the additional factor of the non -tariff barriers becomes temporarily unpleasant.
The crusade of President Trump with Canada and Mexico, which tremble in the world’s inventory markets. But the immediate reaction of Canada and Mexico that would offer concessions calmed the nerves of investors on Tuesday, after Trump suspended its 25%risk value, accepting a 30 -day break in exchange for concessions in the application of borders and crimes .
Volkswagen ($ 98. 1, 1. 03%) and Stellantis (€ 12. 63, 2. 04%) recovered, Mercedes (€ 57. 17 to 0. 07%) and BMW (€ 77. 36 to 0. 88%), Renault shares fell 0. 54%around the progress Founded in its progress perspective for sales of electric vehicles.
The UBS Investment Bank said Calm had returned to inventory markets when the prompt deadline replaced through the need to wait a month before the next episode.
“Possibly it would not be the last wonder of the Tarifa saga, so we expect volatility without stopping on the subject in the coming weeks and months,” UBS said in a study note.
Over the weekend, President Trump said he would put price lists on European-made vehicles. Trump also claimed that the U. S. industry’s deficit with the EU is more than $300 billion a year.
“Such tariffs would not cause as much potential supply chain disruption and inflationary pressure on U.S. consumers as a tariff on Mexican products would do,” according to UBS.
But concluding an agreement with Europe would not be easy, according to former American ambassador to EU Gordon Sondland. The case of a value adjustment in European cars in the United States is clear. EU cars have a rate of 2. 5% in the United States, while Europe has 10% of American car manufacturers.
Sondland said the EU also restricts the sales of the United States through non -prices measures that insist on other protection standards. Food and wine sales are also limited through regulations.
“When EU citizens come to the U. S. on vacation or to live here temporarily, they don’t bring their own cars or their own food. They are perfectly fine to eat our food and drive our cars and it is the best time that the EU has treated our products in this way,” Sondland said in an interview on Monday with the BBC Newsnight programme.
“If we sell a vegetable, a car or a product to use it in the US.
He asked to summarize Trump’s plan for Europe and the world. UU. He is tired of talking about barriers to his foreign industry and needs action now, he said.
Sondland was an ambassador to the first mandate of the EU Trump.
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