European Stocks Rise as Trump Signals Tariff Flexibility
U.S. President Donald Trump has suggested a possible pause on auto tariffs to give carmakers additional time to repatriate their supply chains.
The move follows the White House’s recent decision to temporarily exempt electronic products from sweeping trade duties, signaling a partial retreat from the aggressive tariff strategy announced earlier this month.
“I’m looking for something to help some of the car companies… they need a little bit of time because they’re going to make them here,” Trump told reporters at the Oval Office on Monday.
On April 3, the Trump administration imposed 25% tariffs on automobile imports. Industry giants including Ford, General Motors, and Stellantis NV have reportedly been lobbying for targeted exemptions—especially for low-cost components sourced from Mexico, Canada, and other countries. These parts may otherwise face cumulative taxation, compounding the impact of the full auto tariff.
New Tariff Probes on Semiconductors and Pharmaceuticals
Adding to the uncertainty, the U.S. Department of Commerce announced it has opened two new national security investigations under Section 232, targeting the semiconductor and pharmaceutical sectors. These probes could lay the groundwork for additional tariffs on two of the most globally integrated industries.
The semiconductor review will assess “the effects on national security” of imports tied to semiconductor chips, semiconductor manufacturing equipment (SME), and related derivatives. The pharmaceutical probe will examine imports of active pharmaceutical ingredients (APIs), finished drug products, and medical countermeasures.
Trump emphasized on social media Sunday that no country or sector was being permanently spared:
“NOBODY is getting ‘off the hook’ for the unfair Trade Balances,” he posted.
Market Reaction: Auto Stocks Bounce, Pharma and Tech Wobble
European markets responded positively to Trump’s remarks on potential auto tariff relief. As of Tuesday morning:
-
DAX: +0.9%
-
FTSE 100: +0.7%
-
STOXX 600: +0.6%
-
CAC 40: -0.3%
Shares in German carmakers rebounded after a month of steep losses:
-
Volkswagen: +3.7%
-
BMW: +3.8%
-
Porsche: +2%
-
Mercedes-Benz: +3.8%
However, European tech and pharmaceutical stocks could face renewed pressure. In particular, Novo Nordisk may come under heightened scrutiny, as the U.S. remains its largest market for its flagship weight-loss treatments. The company recently suffered its worst monthly stock decline following lackluster trial results.
Meanwhile, ASML, Europe’s largest semiconductor equipment maker, remains in the spotlight ahead of its earnings release on Wednesday. Shares were up 2.8% in Tuesday trading.
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
