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Shares of Tata Motors nosedived as US threatened to impose tariffs on European cars. The stock plunged as much as 3.9 per cent to Rs 296, in its biggest intraday percentage drop since May 24.
US President Donald Trump had on Friday threatened to escalate a trade war with Europe by imposing a 20 per cent tariff on all US imports of European Union-assembled cars.
Trump posted his threat on Twitter the day European Union reprisals took effect against US tariffs on European steel and aluminium. The EU has targeted $3.2 billion in American goods exported to the 28-member bloc.
“If these tariffs and barriers are not soon broken down and removed, we will be placing a 20% tariff on all of their cars coming into the US Build them here!” Trump wrote.
Analysts say they expect Jaguar Land Rover (JLR) vehicles exported to the United States to take a big hit if Trump imposes auto tariffs. JLR, Britain's biggest automaker, is the company's largest business which contributed nearly 77 per cent to Tata Motors' total revenue in the year ended March 31, 2018.
More than 6.1 million shares changed hands, compared with 30-day moving average of 13.8 million. As of Friday, the stock had fallen 28.7 per cent this year.
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