Trump threatens to raise tariffs, European car manufacturers' stock prices plummet

On January 19th, US President Trump threatened to increase tariffs on European goods, causing a significant drop in the stock prices of European car manufacturers. On Monday morning, Mercedes Benz Group fell 6.7% in the Frankfurt market, BMW Group fell 7%, and Volkswagen Group fell 5.4%. Trump plans to impose a 10% tariff on imported goods from some European countries starting from February, and raise it to 25% in June. BMW, Mercedes Benz, and Volkswagen rely on the US market as their main source of revenue, and the additional tariffs implemented by Trump last year have increased tariffs on EU imported vehicles and parts from about 2.5% to 15%, affecting profitability.