After Donald Trump said on Wednesday night Danish time that he would impose a 25 percent tariff on foreign cars, the stock market has plunged. It is particularly bad for Volvo.
The stock behind Volvo Cars has never been worth less than it is right now. On Thursday, the stock took a nosedive by a whopping 7 percent.
Volvo's value fell below 20 Swedish kronor per share, which is the lowest value ever for the brand, which was listed on the Stockholm Stock Exchange in October 2021.
However, Volvo is not the only one that continues to decline.
After Donald Trump announced on Wednesday night Danish time that he will impose a 25 percent tariff on all foreign cars, several analysts expect it to spread like wildfire.
This means that more car brands will decline. On the Frankfurt Stock Exchange, Mercedes falls by more than 5 percent.
Stellantis, already struggling with car sales in crisis, fell 5 percent on the Paris stock exchange, and even the American brands fell back on the New York stock exchange.
Tesla, for example, fell by more than 5.5 percent after a few days when the stock had otherwise continued to rise.
However, it's not just the stock markets that are turning a blind eye to last night's news from the White House. The EU government in Brussels is also doing the same.
Ursula von der Leyen, President of the European Commission, announced in a press release that the possible consequences of the new tariff will now be evaluated.
– As I have said before, tariffs are taxes – they are harmful to businesses and even worse for consumers, both in the US and in the EU, says von der Leyen.
