German auto stocks were trading sharply lower Thursday after Daimler cut its 2018 earnings forecast, blaming global trade tensions.
Daimler said sales of its Mercedes-Benz SUVs would suffer from fresh tariffs on cars exported from the U.S. to China. Washington plans to levy tariffs of at least $50 billion on Chinese imports as a countermeasure to Beijing's alleged intellectual copyright theft.
The German group predicted earnings would now be slightly lower than last year's level, after previously predicting that profits would rise. Autos was easily the worst performing sector Thursday after the warning from Daimler, with German firms leading the losses.