Luxury Automakers See Increase in Vehicle Prices Amid Ongoing Customs Dispute - Rallying Hope for Resolution
Market Rally Amid Trade Uncertainties
In the upbeat market environment, automotive giants are shining in the DAX, which surged by approximately 1.5% on Friday evening. Porsche AG leads the pack with a gain of 4.3%, followed by Daimler Truck at nearly 4%. The fuel for this growth lies in renewed hopes surrounding the trade dispute.
This optimism is rooted in a couple of factors:
Deal on the Horizon?
The US and China have recently agreed on tariffs, albeit under certain conditions. US Trade Minister Howard Lutnick has confirmed the deal to Bloomberg News, revealing it was signed two days prior. The deal has also given the EU reason to remain hopeful for a resolution in the trade dispute.
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New Proposal in the Works
Meanwhile, a new US offer is under discussion in Europe. EU Commission President Ursula von der Leyen has confirmed that the EU has received a fresh proposal from the US. Dashed details are emerging, with the proposal still under evaluation. However, von der Leyen has kept expectations in check by stating, "Our message today is clear. We are ready for an agreement. At the same time, we are preparing for the possibility that no satisfactory agreement will be reached."
Is the Deadline Flexible?
Even if a deal is not reached, there's still some breathing room. According to the White House, the deadline for country-specific tariffs is "not decisive" and can be extended. Since April, vehicles and vehicle parts imported into the US have been subject to a 25% tariff. A planned 50% tariff on EU imports is currently suspended until July 9, but it seems this date isn't set in stone.
The news is received positively in the market. Companies highly impacted by tariffs, such as Porsche, which manufactures exclusively outside the US, are up 4.3%. Daimler Truck, with more than 40% of its 2024 sales in North America, is up 4.0%. BMW is up 3.4%, Mercedes is up 2.8%, Volkswagen is up 1.6%, and Continental and Porsche Holding, both listed in the DAX, are up 3.6% and 1.6%, respectively. Meanwhile, Stellantis is up 1.9%.
The industry is swiftly reacting to the potential resolution of the trade dispute. However, no solid solution has been found yet, and the back-and-forth may persist. DER AKTIONÄR believes the best chances lie with Porsche AG and is counting on a comeback in the AKTIONÄR portfolio.
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Data Protection Declaration Read here
Conflict of Interest Disclosure The board and majority shareholder of the publisher, Börsenmedien AG, Mr. Bernd Förtsch, has directly and indirectly taken positions in the following financial instruments discussed in the publication or related derivatives, which could benefit from any price development resulting from the publication: Volkswagen Vz., Mercedes-Benz, Porsche AG, Porsche Automobil Holding, Stellantis, Daimler Truck.
Shares of Porsche AG are held in a real-time portfolio of Börsenmedien AG.
- The optimistic market trend is observations in the automotive industry, especially companies like Mercedes, Volkswagen, Daimler Truck, BMW, and others, as the potential resolution of the trade dispute promises a reduction in tariffs that negatively impact their businesses.
- The finance sector and businesses are closely monitoring the developments in the US-EU trade dispute, with fortunes tied to the resolutions as companies like Porsche, Mercedes, Daimler Truck, BMW, and Volkswagen are among those heavily impacted by the tariffs, and any mobility in the trade negotiations could positively affect their stocks.
