Auto related share prices across the globe dipped significantly this week, after US President’s recent comments on the imposition of 25% tariffs on imported cars to the United States from the EU. Higher tariffs are likely to put OEMs under pressure as automotive sales growth has remained flat across North America and Europe. Further, Tier I automotive OEMs have cut their revenue outlook citing weak car sales, higher raw material costs, warranty claims and anticipated tariffs. Germany-based automotive supplier Continental was worst hit, as its stock plunged nearly 13% in a single day taking it 28% below its value at the start of the year. Shares of other European auto parts suppliers such as Valeo, Michelin and Faurecia also declined nearly 4% midweek. Higher tariffs on automotive and automotive raw material (such as steel & aluminum) has been a major cause of scuffles with EU and China, as the Trump administration looks to bring more manufacturing jobs back to the US. – Hanish Bhatia