Daimler Truck, Traton Slide Over Trump’s Truck Tariffs
Volvo AB Shares Rose; Volvo and Mack Maker Relies Less on Manufacturing in Mexico
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Daimler Truck Holding AG and Volkswagen AG’s Traton SE declined in early trading as Europe’s truck makers try to decode what to make of President Donald Trump’s latest tariff salvo.
The U.S. plans to impose a 25% duty on imported heavy trucks starting Oct. 1, Trump announced in a post on Truth Social, without providing more details. Daimler Truck shares fell as much as 4.9% in Frankfurt, while Traton’s stock dropped 3.1%. Both companies operate assembly sites in Mexico that may be affected by the levies.
Shares of Sweden’s Volvo AB — which makes Volvo and Mack trucks locally — rose as much as 3.45% in Stockholm. The company may be better positioned than its peers because it relies less on manufacturing in Mexico, according to Bernstein analysts led by Harry Martin.
Trump’s latest moves add to mounting trade hurdles hitting the transport sector, with 15% duties on cars imported from the European Union weighing on the likes of Porsche AG and Volkswagen’s Audi. The truck makers have in recent years made significant investments in new technologies including batteries and hydrogen fuel cells.
The U.S. is Daimler Truck’s largest market, where the company generates about 40% of its global sales with brands such as Western Star, Thomas Built Buses and Freightliner. The latter dominates the country’s heavy-duty truck segment. Daimler Truck operates plants in North Carolina and Oregon but also ships in vehicles from Mexico, exposing it to potential cross-border disruptions sparked by tariffs. The company said it’s closely monitoring the situation but too early for a more detailed comment.
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Traton had seen deliveries and orders slump on tariff uncertainty in the U.S. even before Trump’s announcement. The truck maker in July flagged poor demand in North America and earlier this year cut a shift at an International Motors plant in Mexico. The company declined to comment on the tariffs.
The local content of Volvo’s U.S. trucks is between 60% and 70%, the company said in an email, adding that it still needs to import some components that aren’t made in the country.
“What we have to go on at this stage is merely a Truth Social post,” Volvo said. “We should wait to see the actual legislative proposal before we can fully assess its potential effects.”
