Automobile stocks rally on tariff relief

|By:, SA News Editor

Automobile stocks are revving up after the U.S. is reported to be in discussions with Germany auto execs on a plan to eliminate tariffs on both sides of the Atlantic. The development is a sharp reversal from President Trump's threat of a 20% tariff on vehicle imports.

In Frankfurt trading, BMW (OTCPK:BMWYY) is up 4.27%, while Volkswagen (OTCPK:VLKAY, OTCPK:VLKPY) is 4.16% higher and Daimler (OTCPK:DDAIF) is showing a 3.36% gain.

In Paris, Renault (OTC:RNSDF, OTCPK:RNLSY) is up 3.15%.

Shares of Fiat Chrysler Automobiles are up 5.55% in Milan and are 5.98% higher in U.S. premarket trading.

General Motors (NYSE:GM) is up 1.62% premarket in the U.S. and Ford (NYSE:F) is 1.00% higher.

A formal agreement on the 0% tariff proposal will need to run through the EU and meet certain WTO criteria.

Previously: U.S. offers German carmakers 'zero tariffs' solution (July 5)

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