European automakers' shares fall after Trump promises to impose duties

Shares of U.S. and European car manufacturers fell because of the promise of U.S. President-elect Donald Trump to impose duties. This was reported by Reuters on November 26.

U.S. automakers General Motors and Ford Motor fell 4.2 percent and 2.2 percent, respectively, in premarket trading. U.S.-listed shares fell 1.2%.

In addition, shares of Germany's Volkswagen fell 2.3% and Jeep maker Stellantis fell 4.8%.

Italian broker Intermonte said that more damage from US import duties from Mexico will be caused by Stellantis due to imports of 358,000 vehicles in 2023.

Draghi and enemies: EU calculates economic losses from Trump's return

New US administration promises Europe a trade war

Earlier in the day, Trump said he would impose additional 10% duties on goods from China and 25% duties on all products from Mexico and Canada. He said China had failed to fulfill its promise to impose the death penalty on fentanyl traffickers, causing "drugs to flood" into the US - mostly through Mexico - on an unprecedented scale.

Prior to that, on November 20, The Washington Post (WP) reported that the trade duties Trump is about to impose could seriously damage European Union (EU) countries. According to economists, Trump's "protectionist measures" may cause further recession in Europe and complicate relations between the allies.

On November 6, it became known that the EU fears that after the election of Trump may start a new trade war between the countries of the association and Washington. It was specified that in 2018, as President of the United States, Trump, for reasons of national security, imposed a duty on steel at a rate of 7% and a tariff on imports of aluminum at a rate of 10%.