REUTERS/Brendan McDermid
- Shares in BMW, Daimler, Porsche, and other car companies crashed on Friday after China announced a fresh wave of tariffs on US goods.
- The duties include a 25% tariff on cars made in the America, set to take effect in mid-December.
- View Markets Insider’s homepage for more stories.
Shares in BMW, Daimler, and other car companies crashed on Friday after China announced a fresh wave of tariffs on US goods, including a 25% tariff on cars made in America.
The new tariffs go into effect on September 1 and December 15, affecting $75 billion worth of goods.
BMW and Daimler were the worst affected stocks, as they’re among the European automakers that manufacture their cars in the US and ship them to China, meaning they’re subject to the tariffs.
Auto stocks have struggled this year due to the US-China trade war and a global economic slowdown reducing the number of new car orders.
"This is clearly not a good development for those firms," said Andrew Hunter, senior US economist at Capital Economics, told Markets Insider.
"But for those firms, it’s worth noting that most vehicles sold to the Chinese market are made within China," Hunter added. "With the trade war more generally, its continuing to escalate is a problem for US firms and we could see more negative consequences in other areas such as soybeans."
Here’s a list of auto stocks hit by the tariffs as of 9:45 am EST. The declines outpaced a broader 0.4% decline in S&P 500:
- BMW -2.31%
- Daimler -1.74%
- VW -0.45%
- Michelin -0.7%
- Continental -0.9%
- Fiat Chrysler -1.3%
- Renault -1.1%
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Source: Business Insider – feedback@businessinsider.com (Yusuf Khan)