U.S. President Donald Trump has threatened a 20 percent tariff on EU cars after the European Union introduced tariffs on £2.4bn worth of US goods, according to Reuters.
Autos stocks sold off rapidly, down 1.3 percent, and Germany’s DAX index fell into negative territory, down 0.2 percent as big German carmakers Daimler, Volkswagen, and BMW suffered.
Volkswagen fell 1 percent, Daimler fell 1.5 percent, and BMW fell 2.2 percent. Italian carmaker Fiat Chrysler also lost 2.8 percent after Trump tweeted the tariff threat.
