Stock markets reacted nervously to Donald Trump’s latest trade salvo, with shares in some of Europe’s biggest truck manufacturers tumbling on the news of a potential 25% US import tariff. Daimler Trucks, a major commercial vehicle producer, saw its stock decline by more than 2%, as did the Traton Group, which owns prominent brands like Scania and MAN.
This market tremor is a direct response to a new protectionist push from the White House, set to take effect on October 1st. The truck tariff is part of a larger package that includes a 50% duty on kitchen cabinets and a staggering 100% tariff on branded drugs. The German auto trade body, the VDA, expressed its bewilderment, calling the truck tariffs “incomprehensible” and warning of damage to global supply chains and US jobs.
The UK pharmaceutical industry has been hit with the most severe threat. The 100% tariff could effectively close off the US market for British drugmakers, a devastating blow to a sector that was left out of a prior US trade agreement. The British government is now in crisis talks with Washington, trying to shield what it describes as a “critical” component of its economy.
Amid the market anxiety, a counter-narrative has emerged from financial analysts. Lale Akoner of eToro suggested that “investors see more bark than bite,” arguing that the tariffs are strategically designed to spare companies with a manufacturing footprint in the United States. If this holds true, the impact may be more contained than initially feared, primarily affecting companies that rely solely on exports.
However, the uncertainty is palpable. The US has also opened a “section 232” investigation into medical devices, a move widely seen as a precursor to tariffs. With the EU exporting a vast range of these products to the US, from stents to pacemakers, concerns are growing that this trade dispute could widen even further, creating sustained instability for European businesses.