By Mauro Orru

Shares of major European car makers and auto-parts manufacturers fell Thursday after President Trump said he would impose 25% tariffs on global automotive imports to the U.S.

The tariffs--set to cover finished automobiles and automotive parts--will be levied on top of existing duties, including a 2.5% tariff imposed by the U.S., as well as existing 25% tariffs on light trucks. Trump said the U.S. would start collecting the auto tariffs on April 3.

Trump has been turning to tariffs in his second term to address what he sees as unfair trade imbalances between the U.S. and other world economies. The president ordered federal agencies to explore how to adjust U.S. tariffs to match those of other countries.

The latest announcement weighed on European automotive stocks Thursday. In Germany, Mercedes-Benz Group shares slumped more than 5%, while BMW stock lost over 4% and Volkswagen shares fell more than 3%. Shares of premium car maker Porsche AG are down more than 5%. German automotive supplier Continental lost 3%.

Stellantis, the owner of the Jeep and Dodge brands, shed more than 5% in Milan. Ferrari shares lost 1.5%, while tire maker Pirelli were down more than 2.5%. Meanwhile, Volvo Car shares were down more than 6%, while Aston Martin in the U.K. was down nearly 5%.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

March 27, 2025 04:36 ET (08:36 GMT)

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