Asger Risom
Shares in Daimler Truck and Traton fell after U.S. President Donald Trump announced fresh 25% tariffs on heavy-duty trucks, raising new tensions in an already fragile global trade environment.
Shares in Daimler Truck and Traton fell after U.S. President Donald Trump announced fresh 25% tariffs on heavy-duty trucks, raising new tensions in an already fragile global trade environment.
Stock Markets React Swiftly
Daimler Truck shares dropped 3.3%, making it the biggest loser in Germany’s blue-chip index. Traton, Volkswagen’s truck subsidiary, fell 2.8%.
Tariffs Begin October 1
The U.S. will impose 25% duties on heavy-duty trucks from October 1, part of a broader package that also targets pharmaceuticals and furniture imports.
Big Stakes for Daimler
Analysts at Citi estimate tariffs could cost Daimler Truck €700–800 million in earnings, though the company may offset about half through price increases.
USMCA Sites Under Scrutiny
Both Daimler and Traton operate truck plants in the U.S. and Mexico. Analysts believe Trump’s tariffs will apply to USMCA-compliant Mexican sites, though details remain unclear.
Tariff “Stacking” Uncertainty
Bernstein analysts noted it’s unclear whether the new sector-specific tariffs will be added on top of country-based duties, despite trade deals meant to prevent double charges.
EU Tariff Deal in Question
Brussels and Washington had agreed to a 15% ceiling on EU goods entering the U.S., but it remains uncertain whether Trump’s new measures override that agreement.
Volvo Emerges as a Winner
Unlike rivals, Volvo builds all its trucks in the U.S. Its shares rose nearly 3% as the company praised tariffs for removing what it called a “comparative disadvantage.”
Wider Trade Tensions
The truck tariffs come alongside sweeping new levies, including 100% duties on branded drugs and additional tariffs on furniture, intensifying Trump’s trade war.
Trump Cites National Security
The president framed the tariffs as protecting U.S. industry and national security, though critics say major suppliers like Germany, Canada, and Japan pose no such threat.
Pressure on Transport Costs
Higher tariffs on commercial vehicles risk raising transportation costs — a move at odds with Trump’s vow to curb inflation for everyday goods.
Global Industry on Edge
The tariffs add new uncertainty to global supply chains already under strain, raising questions about the future of transatlantic trade in the automotive sector.
This article is made and published by Asger Risom, which may have used AI in the preparation
