Strong Growth of European Car Manufacturers’ Stocks After Trump Abandons Additional Tariffs

The stock prices of European car manufacturers rose by up to five percent this morning, following a meeting between European Commission President Jean-Claude Juncker and Donald Trump, during which the American president announced that he would abandon the introduction of additional tariffs on the import of European cars into the U.S., reports Bloomberg.

Specifically, BMW shares rose by 5.5 percent this morning, Volkswagen by 3.3 percent, Fiat by 4.4 percent, and Daimler by 2.6 percent, after tensions in U.S.-EU relations eased, and the possibility that European cars in the U.S. could become more expensive by up to 10,000 euros was eliminated, which would have occurred had Trump proceeded with his announcement of imposing tariffs.

>>>The EU assesses the Juncker-Trump meeting as a great success

The German automotive industry association described the meeting as a “great step forward” and “good news for the industry and consumers on both sides of the Atlantic.”

Juncker and Trump met yesterday, and prior to the meeting, Trump had announced the introduction of tariffs of 25 percent on European cars, but after three hours of talks, a turnaround occurred, which was immediately announced in the Rose Garden of the White House.

>>> Juncker travels to Washington on Wednesday to stop the EU-U.S. trade war

Trump announced a “new phase” in U.S.-EU trade relations.