European car shares fall on uncertainty over China's tariff response

EU imposed sanctions on imports of Chinese electric cars

A worker wipes as visitors sit on a BYD Song Pro DM-i car model during the Auto China 2024 in Beijing. File picture: Andy Wong/AP

Shares of some of Europe's biggest carmakers fell further on uncertainty over how China might respond to the EU's new tariffs on imported Chinese electric vehicles to combat what Brussels sees as excessive subsidies from Beijing.

Chinese countermeasures could target cars directly, which raises the risk for German luxury carmakers, and could even take aim at other sectors like France's cognac industry, analysts said.