Trump could impose tariffs on imported cars from next week

Patrik Stollarz | AFP | Getty Images

Volkswagen cars in the port of Bremerhaven, Germany.

European auto stocks continued their loss Tuesday after a German magazine announced that US President Donald Trump could impose tariffs on imported cars starting next week.

According to Wirtschaftswoche, "European sources" said that a US Commerce Department investigation report was on Trump's desk, adding: "Trump may decide tariffs as early as next week after the meeting. of the G20 in Buenos Aires ".

According to the same source, the report recommended a 25% tariff on car imports from all countries except Canada and Mexico.

However, the White House has repeatedly pledged not to impose tariffs on the European Union or Japan as long as it constructively progresses in trade negotiations.

The European Commission, which oversees the 28-member EU trade policy, declined to comment on the report in general, but said that Wirtschaftwoche's reference to EU Trade Commissioner Cecilia Malmstrom Washington on Wednesday was not correct. Neither the White House nor the US Department of Commerce responded immediately to a request for comment.

The Department of Commerce has not made public any findings of its investigation as to whether automobiles and their imported parts pose a risk to national security. Reuters reported that the department had submitted its recommendations earlier this month to the White House, which had not acted immediately.

Trump could take weeks or months to decide. Once he has made his decision, the White House has 15 days to impose the new tariffs.

European car stocks extended their losses after the report, falling by 2.5%. Auto inventories have fallen by 20% since the beginning of the year, with fears of tariffs and slowing growth in auto sales pushing investors away from the sector.

VW's shares widened losses and traded at 4.1%. BMW shares fell 1.4%. Daimler shares declined 2.4%.