Shares of major German automakers fell on Monday after U.S. President Donald Trump announced a sharp increase in tariffs on car imports, raising duties to 25% from a previously agreed 15%.

India plans to sharply reduce tariffs on cars imported from the European Union, cutting duties to 40% from levels as high as 110%, sources said, marking the country’s most significant opening yet of its protected auto market as the two sides move closer to a free trade agreement that could be announced as early as Tuesday.

German car exports to the United States fell sharply in the first nine months of 2025, with a nearly 14% drop, making the auto sector the hardest-hit industry under U.S. tariffs introduced during the Trump administration, according to a new study.

US President Donald Trump has announced new import taxes of 25% on cars and car parts coming into the US in a move that threatens to widen the global trade war.