Reported 7 months ago
European auto stocks, particularly those of Germany's luxury carmakers, have fallen on concerns over potential retaliation from China in response to the EU's new tariffs on Chinese electric vehicles. The EU imposed extra duties on imported Chinese electric cars, prompting fears of direct retaliatory measures from China that could impact luxury carmakers exporting to China. Despite some investors expecting a balanced response, the European auto index dropped 2.3% to a four-month low, with Chinese-exposed Volvo Car being the biggest decliner. Analysts warn of potential challenges for the auto sector and other industries like France's cognac industry if tensions escalate further.
Source: YAHOO