After Monday (3 March), European shares recorded the opposite development on Tuesday and showed a significant decline. This was the biggest measurement of the action of automakers that responded to the entry of US import duties against Canada, Mexico and China. Informed DPA and Reuters.
Import duties on goods from Canada and Mexico represent 25 % with the exception of Canadian energy products. On the US they imposed duties of 10 %. They apply duties of 20 %against China, all duties have entered into force today.
In response, Canada announced its import duties to US goods, as well as 25 %. The total value of these goods is more than EUR 102 billion, with almost 20 billion euros for products immediately. For goods for the remaining more than € 82 billion in the next three weeks, unless the US changes its policy.
In response, China introduced some US duties of 15 % and 10 % duties. They will enter into force on 10 March. The Mexican President Claudia Sheinbaum also heard, who said that Mexico would also announce her retaliation measures.
In response to these events The Pan -European stock index of STOXX 600 fell by almost a percentage, while on Monday it recorded growth by 1.1 %, supporting it significantly strengthening the shares of the armament companies. They responded to the promise of several European politicians to increase defense spending. The Frankfurt DAX main index fell by 1.5 % on Tuesday, the key index of the CAC 40 Paris Stock Exchange by more than 1 %, and the FTSE main index in London also recorded the decline. It fell by 0.6 %.
The stock exchanges dragged down especially the action of automakers. Volkswagen, BMW and Stellantis acted in the range of 2 % to 5 %. Continental tire manufacturer’s shares have fallen even more significantly, which recorded a 9 %decrease. The reason is the companies in Mexico, where they exported their products to the US.
