BMW, Mercedes Dodge Trade Shock With Tariff Reprieve

BMW AG, Mercedes-Benz Group AG and other European automakers are getting a €4 billion ($4.7 billion) earnings lift from the trade deal the European Union struck with the US, according to Bloomberg Intelligence.

European auto stocks rose in early trading on Monday over news that the rate on car imports from the EU would be lowered to 15% from 27.5%. BMW and Mercedes are also benefiting from likely tariff exemptions for about 185,000 cars they export annually to the EU from their American factories, BI analyst Michael Dean said in a note.