Trump may impose tariffs on imported cars from next week - report

[BERLIN] European auto stocks extended losses on Tuesday after a German magazine reported that US President Donald Trump could impose tariffs on imported cars from next week.

Wirtschaftswoche cited EU sources as saying a US Department of Commerce investigation report was on Mr Trump's desk, adding: "Trump will possibly decide on tariffs as early as next week after the G20 meeting in Buenos Aires."

It cited the sources as saying the report recommended a 25 per cent customs duty on car imports from all countries except Canada and Mexico.

The White House House did not immediately respond to a request for comment. Neither did the European Commission.

European auto stocks extended losses after the report, falling as much as 2.5 per cent. Autos stocks are down 20 per cent year-to-date as fears of tariffs and slowing growth in car sales drive investors away from the sector.

Shares in VW widened losses and were trading 2.8 per cent lower at 1515 GMT. BMW shares were down 1.6 per cent. Daimler shares were down 2.2 per cent. 

REUTERS