Shares of companies that transport cars across the sea have plummeted after President Trump expanded his trade war by imposing a 25% tariff on vehicles not made in the US.
Wallenius Wilhelmsen ASA dropped as much as 9.1% in Oslo, reaching its lowest point since 2023, while Hoegh Autoliners ASA lost up to 7.4, Bloomberg reports.
I deeply regret the US decision to impose tariffs on European automotive exports. The automotive industry is a driver of innovation, competitiveness, and high quality jobs, through deeply integrated supply chains on both sides of the Atlantic.
…said Ursula von der Leyen, President of the European Commission, regarding the US announcement of car import tariffs.
The car shipping sector had previously experienced a boom, driven by a surge in exports from China that absorbed much of the vessel supply. However, this growth had begun to slow as new ships entered the market and demand that was initially inflated by the pandemic began to level off.
Now, the escalating trade war and additional tariffs on vehicles present another challenge.
All else equal, we expect car volumes going into the US to decrease, which will negatively impact seaborne volumes and, consequently, car carrier earnings.
…Fearnleys Securities analysts, including Fredrik Dybwad noted.
