When Trump vowed to impose tariffs on European cars, Ford and GM stock plunged

(Image credit: Getty Images)

published 22 June 2018

The escalating economic conflict with the European Union is proving dangerous for American car companies.

After President Trump announced Friday that he would impose a 20 percent tariff on all cars imported from the EU, shares for both European and American car companies plummeted, reports Bloomberg.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE

https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Trump punched back by commanding that U.S. car companies "build them here," but investors were wary of his move. The president wants the EU to walk back its import barriers to U.S. goods "soon," but it seems market-watchers aren't holding their breath. Shares of Ford, Tesla, Chrysler, and General Motors fell rapidly after Trump announced the forthcoming tariffs, and Bloomberg reports that Volkswagen, Daimler, and BMW each fell in Frankfurt. Lawmakers have criticized Trump's decision to target the auto industry, arguing that his claims that auto imports threaten the country's defense capabilities are baseless. Read more at Bloomberg.

Explore More

Summer Meza has worked at The Week since 2018, serving as a staff writer, a news writer and currently the deputy editor. As a proud news generalist, she edits everything from political punditry and science news to personal finance advice and film reviews. Summer has previously written for Newsweek and the Seattle Post-Intelligencer, covering national politics, transportation and the cannabis industry.

Subscribe to The Week

Sign up for The Week's Free Newsletters

Sign up for Today's Best Articles in your inbox