FRANKFURT, May 4 (Reuters) - Shares in German carmakers and auto part suppliers slid on Monday after U.S. President Donald Trump announced an increase in car import tariffs to 25% from 15% previously agreed, dealing a fresh blow to the already beaten sector.
The pan-European automobiles and parts index was down 0.7% as of 0750 GMT.
German carmakers Porsche, BMW, Mercedes-Benz, Volkswagen were down 0.8% to 1.5%. Car parts suppliers Schaeffler and Continental were down 1.2% and 4% respectively.
The new tariffs announcement is sure to further weaken position of German premium car manufacturers, said Matthias Schmidt, European autos market analyst at Schmidt Automotive, noting that Audi and Porsche are among most exposed companies due to the absence of local production.
The analyst said he expected "2026 to be another year of profit warnings following this announcement."
The German automotive sector has already been under strain from softening demand in China, slowing global growth and higher input and labour costs eroding profitability.
Reporting by Christoph Steitz, Amir Orusov, Editing by Linda Pasquini
Source: Reuters