Why new EU steel tariffs to curb Chinese imports are giving carmakers a headache
Proposal to cut tariff-free quotas, double duties for imported steel triggers sell-off in Europe’s auto stocks, complaints from industry group
A proposed increase to EU steel tariffs has already sown alarm among the continent’s car manufacturers, with stocks of major players plunging in the immediate aftermath of the announcement and industry insiders warning the measures could worsen cost pressures already weighing down growth in the sector.
The timing of the EU’s announcement was particularly poor for German giant BMW, as the company revealed it had downgraded its 2025 financial outlook the same day. It cited tariff increases from US President Donald Trump and weak performance figures in China as the main reasons for the adjustment.
By close of business Wednesday, BMW’s stock had fallen as much as 8.25 per cent. Among other German manufacturers, Mercedes had dipped by 2.92 per cent and Volkswagen had gone down 1.85 per cent. French brand Renault, meanwhile, saw a 1.83 per cent drop.
China is the EU’s biggest import partner for articles of iron and steel, shipping products worth €12.5 billion (US$14.5 billion) to the bloc in 2024 and accounting for 37.3 per cent of the union’s total imports, according to official data.
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