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Trump may impose tariffs on imported cars from next week: report



FILE PHOTO: Mechanic staff work on the production line of Volkswagen e-Golf in the Glaeserne Manufaktur plant in Dresden, Germany May 8, 2018. REUTERS/Matthias Rietschel

BERLIN (Reuters) – European auto stocks extended losses on Tuesday after a German magazine reported that U.S. President Donald Trump could impose tariffs on imported cars from next week.

Wirtschaftswoche cited EU sources as saying a U.S. Department of Commerce investigation report was on Trump’s desk, adding: “Trump will possibly decide on tariffs as early as next week after the G20 meeting in Buenos Aires.”

It cited the sources as saying the report recommended a 25 percent customs duty on car imports from all countries except Canada and Mexico.

The White House House did not immediately respond to a request for comment. Neither did the European Commission.

European auto stocks extended losses after the report, falling as much as 2.5 percent. Autos stocks are down 20 percent year-to-date as fears of tariffs and slowing growth in car sales drive investors away from the sector.

Shares in VW (VOWG_p.DE) widened losses and were trading 2.8 percent lower at 1515 GMT. BMW (BMWG.DE) shares were down 1.6 percent. Daimler (DAIGn.DE) shares were down 2.2 percent.

Reporting by Michelle Martin in Berlin, Ludwig Burger in Frankfurt, Philip Blenkinsop in Brussels, Helen Reid in London and Jeff Mason in Washington; Editing by Paul Carrel