Investing.com -- Shares of German automakers fell on Monday after U.S. President Donald Trump threatened sweeping new tariffs on European imports, with no exemptions for autos, which are already subject to a 27.5% duty. Volkswagen (ETR:VOWG_p, BMW (ETR:BMWG), and Mercedes-Benz Group (ETR:MBGn) were down between 1.2% and 1.8% by 07:59 GMT, while Porsche (ETR:P911_p) fell 2.1%. Trump said on Saturday he would impose a 30% tariff on imports from Mexico and the European Union (EU) starting August 1, following stalled trade negotiations. The move, which escalates tensions with key allies and adds to investor uncertainty, was announced in letters addressed to European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum, posted on Trump’s Truth Social account. Both the EU and Mexico criticized the tariffs as unfair and disruptive but said they would continue talks with Washington in hopes of reaching a deal before the deadline. Trump also sent similar warnings to 23 other countries, including Canada, Japan, and Brazil, proposing tariffs ranging from 20% to 50%. He confirmed that the 30% tariff was “separate from all sectoral tariffs,” meaning existing levies—such as 50% on steel and aluminum and 25% on autos—would remain in place. The August 1 deadline leaves room for last-minute negotiations, and some observers pointed out Trump’s past habit of walking back tariff threats. The new round of letters marks a return to the aggressive trade stance seen in April, when markets were rattled by a flurry of reciprocal tariff announcements, later delayed by the White House. The euro slipped to a three-week low on Monday, while the dollar edged higher following President Trump’s latest tariff announcement. Markets appeared largely unfazed by the renewed trade tensions, with investors showing signs of fatigue toward Trump’s repeated tariff threats. U.S. equities continued to reach record highs, and the dollar saw only modest gains despite the escalating rhetoric. Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks AI – 6 model portfolios fueled by AI stock picks with a stellar performance this year... In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies. So if VOWG is on your watchlist, it could be very wise to know whether or not it made the ProPicks AI lists.

"We have roughly estimated that German manufacturers probably incurred additional costs of around half a billion euros in their export business from Germany to the USA in April," Hildegard Mueller told the Funke media group.