** Shares in German truck manufacturer Traton 8TRA.DE fall 4.3%, on track for their worst day since July 28 if the losses hold

** Warburg analyst Fabio Hölscher says the shares are moving on Monday's announcement for a new 25% tariff on large trucks by U.S. President Donald Trump

** Shares in Swedish rival Volvo VOLVb.ST also fall 2.8%

** Hölscher notes Traton assembles around 70% of its U.S.-bound trucks in Mexico, which puts it at a competitive disadvantage vs Paccar PCAR.O and Volvo that have a smaller Mexico footprint

** Metzler analyst Pal Skirta also points to Traton's pre-close call on Monday evening as a factor explaining the drop in shares

** Traton management said the German stimulus package has not resulted in a positive momentum in Europe, and that the truck market has been weak amidst freight recession and tariff-related uncertainty, based on slides from the presentation

(Reporting by Simon Ferdinand Eibach)

((Simonferdinand.eibach@thomsonreuters.com))