European Autos Gain as Tariff Deadline May Be Extended

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Photo:Reuters

European car companies saw their stock prices go up on Friday morning. This happened because the U.S. government said it might delay the start of new tariffs on goods coming from different countries. These tariffs were supposed to start soon, but the White House said the dates are not fixed and could be pushed back.

This news made investors feel better, especially after China also confirmed a trade deal made with the U.S. in London earlier this month. Because of this, Europe’s car stocks went up by around 2%.

Some big winners were Porsche and French auto parts company Valeo, both rising 2.2%. Stellantis went up 2%, and Mercedes-Benz saw a 1.6% jump in its stock price. These companies sell many cars and parts to the U.S., so they are directly affected by any new taxes.

Right now, vehicles and parts sent from Europe to the U.S. have a 25% tax. A bigger tax of 50% was planned but is on hold until July 9. Cars and machines are Europe’s top exports to America, so any delay in extra taxes is good news for them.

Across Europe, most stocks were up, especially in the car and mining industries. At the same time, utility stocks (like electricity and water companies) were slightly down, as people moved their money to more active investments.

In another story, an Italian bank, Mediobanca, said it would return €4.9 billion to its shareholders over three years. It also rejected a takeover offer from another bank, Monte dei Paschi di Siena, saying the deal doesn’t make sense and carries too many risks.