Trump announced raising US tariffs on European cars to 25% from 15%, citing EU trade‑deal breach.
European auto stocks slumped, with Continental down 4%, Porsche, Mercedes, BMW and Volkswagen each falling 1‑1.3%.
STOXX Europe 600 Automobiles & Parts index fell 0.7%, becoming the region’s worst‑performing sector.
EU Commission rejected the claim, noting the August trade deal set a 15% tariff for EU cars, with ratification pending.