Trump's heavy truck tariffs impact Daimler and Traton, Volvo rises against the market trend.

As European truck manufacturers try to understand the implications of President Donald Trump's latest tariff measures, both Daimler Truck Holding Company and Traton SE under Volkswagen have seen declines. Trump announced on the social media platform Truth Social that the U.S. plans to impose a 25% tariff on imported heavy trucks starting next Wednesday, but did not provide more specific details. As a result, Daimler Truck Company's stock price fell over 3% on the Frankfurt Stock Exchange, while Traton's stock price fell over 2%. Both companies have assembly plants in Mexico, which may be directly affected by this tariff policy. In contrast, Swedish Volvo AB's stock price rose 3% on the Stockholm Stock Exchange. The company is responsible for producing Volvo and Mack trucks and has production facilities in the region. Analysts led by Harry Martin at Bernstein believe that Volvo's market position may be better than its peers due to its relatively low reliance on Mexican manufacturing. Trump's latest move further exacerbates the trade barriers facing the transportation industry. Previously, the U.S. imposed a 15% tariff on cars imported from the European Union, putting pressure on companies like Porsche and Audi. Prior to Trump's announcement of additional tariffs, Traton's delivery and order volumes had already plummeted due to the uncertainty of U.S. tariff policy. The truck manufacturer had previously stated weak demand in the North American market in July and had reduced shifts at its international automotive company factory in Mexico earlier this year. Traton refused to comment on the tariff issue. In response to the tariffs, Volvo stated in an email that the localization rate of its American trucks is between 60% and 70%, but the company still needs to import some non-U.S. manufactured components. Volvo emphasized, "What we see so far is just a 'Truth Social' post; we cannot fully assess its potential impact until we see the actual legislative proposal."