Investing.com -- European auto stocks, including Stellantis (NYSE:STLA), Mercedes-Benz (OTC:MBGAF) (OTC:DDAIF), BMW (ETR:BMWG) (ETR:BMW), and Volkswagen (ETR:VOWG_p) (ETR:VOW3), faced significant declines in today’s trading session. Stellantis shares fell by 4.5%, Mercedes-Benz by 5%, BMW by 5%, and Volkswagen by 4%. The downward trend extended to parts suppliers such as Forvia, which dropped 8%, Michelin (EPA:MICP) (EPA:ML) down 2%, Pirelli (BIT:PIRC) losing 5%, and Continental (ETR:CON) tumbling 8.5%.
These declines come amid escalating global trade tensions, as the US imposed tariffs on Canada and Mexico, and China retaliated with tariffs on US agricultural goods and a ban on exports to certain defense companies. This development has heightened concerns over the impact on international trade, particularly for sectors with significant exposure to the affected markets.
Spanish banks also felt the pressure, with BBVA (BME:BBVA) and Santander (BME:SAN) both dropping around 3%, reflecting their substantial exposure to the Mexican market, which is a significant source of their net revenue. German’s Deutsche Bank (ETR:DBKGn) declined 3%.
The shipping industry, sensitive to changes in global trade dynamics, saw declines in major players such as Maersk (CPH:MAERSK) and Hapag-Lloyd (ETR:HLAG), which fell 3% and 3.5% respectively. Similarly, metals stocks experienced a slump, with Thyssenkrupp (ETR:TKAG) (ETR:TKA) down 3%, ArcelorMittal ( AMS (VIE:AMS2):NYSE:MT) 2%, and SSAB (STO:SSAB) 3%. The mining sector mirrored these losses, with Rio Tinto (LON:RIO) and Anglo American (LON:AAL) facing declines.
Overall, the market response to the intensifying trade war has been markedly negative, as investors weigh the potential impact on international commerce and corporate earnings. The auto sector, in particular, with its intricate global supply chains and reliance on cross-border trade, appears to be among the hardest hit in this latest escalation of trade tensions.
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