Trump Plans New Tariffs on Europe, Sending Auto Stocks Plunging

Shares of major European automakers plunged sharply in early Monday trading after U.S. President Donald Trump threatened to impose tariffs on goods from eight European countries. Trump stated that if no deal is reached regarding the "purchase of Greenland," he would impose a 10% tariff on goods from those countries starting February 1, raising it to 25% by June. The announcement caught countries like Germany and France off guard. Mercedes-Benz shares dropped as much as 6.7%, BMW fell 7%, and Volkswagen declined 5.4%. As the U.S. market is a key source of sales and profits for these three automakers, investors fear the proposed tariffs could significantly impact their businesses.