From Tuesday, the United States will impose 25 percent import tariffs on goods from Canada, with Trump postponing a similar hike for Mexico for one month.

Both countries have enjoyed free access to the US market under a trade deal that Donald Trump negotiated in his first term as president.

An additional levy of 10 percent will be imposed on goods from China.

On Sunday, Trump suggested that the European Union could be the next target for tariffs.

Each year more than a million vehicles cross the Atlantic between the EU and United States, according to the trade association of European car manufacturers.

Germany is the most exposed, with the United States its largest export market for cars after China.

Shares in German carmakers fell sharply on Monday, with Volkswagen down 4.2 percent as it produces several models for the US market in Mexico. Mercedes was down 2.9 percent and BMW 2.3 percent.

Shares in Stellantis, which includes European brands like Fiat and Peugeot as well as Jeep, fell by 4.1 percent as it has factories in both Canada and Mexico.

The tariffs would add to the difficulties faced by the European automobile sector due to a lacklustre market at home, higher energy costs and increasing Chinese competition.

Germany, home to Bayer and BASF, would also be heavily exposed to an increase in tariffs as the United States is the top market for German chemical and pharmaceutical exports.

According to German financial services firm Allianz, the pharmaceutical sector is also exposed, including in Belgium, Denmark and Ireland.

More than 17 percent of French pharmaceutical exports went to the United States in 2022.

The European food industry still has painful memories of Trump’s first term in office, particularly the wine industry.

The United States is the top export market for the French wines.

The Trump administration in 2019 imposed 25 percent tariffs on some products, including wine and cheese and then cognac during its final months in office.

The imposition of punitive tariffs on cognac would be particularly painful for the industry as it is already subject to similar tariffs from China.

Spain, the top exporter of olive oil, was hit hard by the US imposing additional tariffs during the first Trump administration.

The measure was ruled illegal by the World Trade Organization in 2021 but the United State has yet to implement the ruling.

Spanish exports of olives have plunged by 70 percent since 2019.

Donald Trump is a proponent of the oil and gas industries but the outlook is not rosy for the renewables sector, with the US president not hiding his derision for wind power in particular.

Experts say the renewables sector could even see demand drop in the United States due to the tariffs. That could push China to concentrate more on the European market, adding to competition to European firms.

Around a quarter of European steel exports go to the United States, according to the consulting firm Roland Berger, with any tariffs harming the sector that is already struggling amid fierce competition on international markets and the sluggish auto sector, a major client.

Shares in ArcelorMittal fell 2.3 percent and Thyssenkrupp 5.9 percent.

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Volkswagen

BAYERISCHE MOTOREN WERKE AG

Fiat Chrysler Automobiles

Bayer

BASF

ALLIANZ

ArcelorMittal

THYSSENKRUPP

This article was generated from an automated news agency feed without modifications to text.