This fall comes after new threats from Donald Trump concerning customs duties “on products coming from China but also from Canada and Mexico”.
The European automobile manufacturer Stellantis unravels Tuesday morning on the Paris Stock Exchange, weighed down by the declarations of Donald Trump who confirmed that his first economic measures after his inauguration in January will be to increase customs duties on products coming from China but also from Canada and Mexico. Decisions that he justifies by the crises linked to opiates and immigration. Around 10:15 a.m., the group's stock lost 4.09% to 12.28 euros shortly after falling by more than 5%, in a market down 0.67% according to the CAC 40 index.
While Stellantis is suffering the biggest drop among those in the index, the group could therefore review its project to transfer production of its Ram pick-ups to lower-cost countries, according to the Bloomberg agency. Moreover, “the fear is that Europe will also be in the mix, even if [Donald Trump] hasn't mentioned it yet.”underlines Alexandre Baradez, head of market analysis at IG France interviewed by AFP.
The impacted sector
More generally, Alexandre Baradez notes a clear “reduction in values likely to be targeted by customs taxes”. On the Paris Stock Exchange, Renault lost 0.53% to 39.72 euros and the equipment manufacturer Valeo lost 2.57% to 8.13 euros around 10:15 a.m. At the same time, in Frankfurt, automobile stocks are also taking the brunt of the president-elect's declarations. Volkswagen lost 2.45%, BMW 2.25%, Porsche AG 2.56%, Mercedes-Benz 2.06% and Daimler Truck 4.71%.
“On January 20, as one of my many first executive orders, I will sign all necessary documents to impose 25% tariffs on ALL products entering the United States on Mexico and Canada.”wrote President-elect Trump in a post on his Truth Social network. In a separate post, he announced an increase in customs taxes of 10%, which is added to those already existing and to those additional that he could still decide, on “all the many products arriving from China to the United States”.
France
