Trump's heavy truck tariffs impact Daimler, Traton and Volvo reverse the market

The Zhitong Finance App learned that as European truck manufacturers tried to figure out the meaning of President Donald Trump's latest tariff measures, Daimler Truck Holdings and Traton SE, a subsidiary of Volkswagen, both declined. Trump announced in a post on the social media platform Truth Social that the US plans to impose a 25% tariff on imported heavy trucks starting next Wednesday, but no further details were provided.

Affected by this, Daimler Trucks' stock price in the Frankfurt stock market fell by more than 3%, while Traton's stock price fell by more than 2%. Both companies have assembly plants in Mexico, and these plants may be directly affected by this tariff policy.

In contrast, shares of Sweden's Volvo AB (Volvo AB) rose 3% in the Stockholm stock market. The company is responsible for the production of Volvo and Mark trucks, and has a local production site. Analysts Bernstein, led by Harry Martin, believe that since Volvo is relatively less dependent on Mexican manufacturing, its market position may be superior to its peers.

Trump's latest move has further exacerbated trade barriers faced by the transportation industry. Previously, the US had already imposed a 15% tariff on cars imported from the European Union, which put pressure on companies such as Porsche and Volkswagen Audi. Prior to Trump's announcement of additional tariffs, Traton's deliveries and orders had already declined sharply due to the uncertainty of US tariff policy. The truck maker said in July that demand in the North American market was weak and cut the number of flights at its International Automobile Company plant in Mexico earlier this year. Traton declined to comment on the tariff issue.

Volvo responded in an email that the local production ratio of its American trucks is between 60% and 70%, but the company still needs to import some parts that are not made in the US. Volvo emphasized: “What we are seeing so far is only a 'Truth Social' post, and we cannot fully assess the potential impact until we see the actual legislative proposals.”