May 31, 2019 / 7:16 AM / 6 months ago

German car stocks fall early on Trump's Mexico tariff threat

FRANKFURT, May 31 (Reuters) - Shares in German car manufacturers lost in early trading in Frankfurt on Friday after U.S. President Donald Trump threatened to slap tariffs on imports from Mexico from next month.

BMW, Daimler and Volkswagen , which all have plants in Mexico, taking advantage of lower labour costs and the U.S.’s trade deals with its southern neighbour, were down by up to 2.3 percent at 0700 GMT.

Shares in Asian auto makers dropped overnight.

Trump said he would hit all goods coming from Mexico with a 5% tariff, adding that he would hike that further each month until it hit 25% on Oct. 1, unless Mexico takes immediate action against illegal immigration across the U.S. border. (Reporting by Vera Eckert, additional reporting by Riham Alkousaa, editing by Thomas Escritt)

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