- Trump threatens 30% tariffs on EU imports from August
- EU carmakers still subject to 27.5% US import tariff
- Regional carmakers see share drop between 1-2%
- Spirits makers slip; Diageo bucks the trend
FRANKFURT/LONDON, July 14 (Reuters) - Europe Inc was chewing over and trying to digest U.S. President Donald Trump's latest trade salvo on Monday after he threatened a 30% tariff on EU imports from August, with no mention of hoped-for special treatment for sectors like autos or spirits.
Carmakers' shares slipped in Monday morning trading, with Volkswagen , Fiat-to-Jeep owner Stellantis, Renault , BMW , Mercedes-Benz and Porsche all down around 1-2%.
Trump on Saturday said he planned to impose a 30% tariff on imports from Mexico and the European Union from August 1, increasing pressure on Brussels to scramble for a deal and avert what would be a massive blow to the bloc's economy.
The 30% tariff applies "separate from all sectoral tariffs", Trump wrote in a letter to European Commission President Ursula von der Leyen, implying that the current 27.5% duty on autos that have been in effect since April would still stand.
The announcement - when some in Brussels had been hoping a more positive deal was drawing near - injects more uncertainty into one of the world's biggest trade partnerships with some $975.9 billion of two-way goods trade last year, USTR data show.
"The biggest problem with the current tariff policy is the lack of a stable, predictable tariff framework," said Pal Skirta, analyst at Metzler Equities, adding it made business planning and operations "significantly more complex" and costly.
Shares in other major European firms exposed to the United States were also largely down.
Pernod Ricard, maker of Jameson whiskey, was down 1.5%, while cognac maker Remy Cointreau dropped around 4%. Rival Diageo , where sales of Canadian whisky and Mexican tequila drive its U.S. business, bucked the trend, up over 0.5%.
French luxury powerhouse LVMH was down 1.5%, while consumer goods firm Nestle , Procter & Gamble and Reckitt Benckiser were down less than 1%.
Reporting by Christoph Steitz, Amir Orusov and Emma Rumney; Writing by Adam Jourdan; Editing by Miranda Murray, Kirsten Donovan and Louise Heavens
Source: Reuters