New Delhi: Shares of Tata Motors tanked nearly 6 percent as US threatened to impose tariffs on European cars. US President Donald Trump last Friday threatened to slap a 20 percent duty on all cars imported from Europe unless the European Union removed its trade barriers and tariffs on dozens of American products which took effect.
The stock plunged 5.94 in closing trade to touch a low of Rs 295.20 on BSE. It fell 6.31 percent to Rs 288.55 on NSE.
Chart Courtesy: BSE
Trump's warning comes after the European Union imposed tariffs on USD 3.4 billion in US products, ranging from bourbon to motorcycles, in a tit-for-tat response to US President's decision to slap hefty tariffs on European steel and aluminium exports.
Experts believe that Tata Motors-owned Jaguar Land Rover (JLR) vehicles exported to the United States may take a big hit if Trump imposes auto tariffs.
JLR, Britain's biggest automaker, is the company's largest business which contributed nearly 77 percent to Tata Motors' total revenue in the year ended March 31, 2018, a Reuters report said.
With Agency Inputs