FX.co ★ French Stocks Fall on Trump’s Auto Tariffs

On Thursday, the CAC 40 experienced a decline of 0.7%, reaching approximately 7,970 in early trading, marking its lowest point in nearly two weeks. This downturn occurred following the announcement by U.S. President Donald Trump regarding the implementation of new tariffs on auto imports. The President declared a 25% tariff on all foreign-made vehicles and auto parts, set to take effect on April 2. This decision has reignited concerns about a trade war and exerted significant pressure on the automotive sector. Consequently, shares of major French automakers suffered, with Stellantis plummeting by 5.3% and Renault decreasing by 1.2%. Among other notable declines, software company Dassault Systèmes saw a reduction of 3.1% in its stock value, while steel industry leader ArcelorMittal fell by 2.8%. Additionally, the stock of chemicals manufacturer Arkema dropped by 2.1% to its lowest point since mid-January. This decline followed a downgrade by J.P. Morgan, which shifted its rating of Arkema's stock from "neutral" to "underweight" due to a more uncertain outlook linked to the potential impact of the tariffs.