Shares of Volkswagen AG, Stellantis, Mercedes-Benz Group, and Rampart Group plunged Monday as market speculation intensified over a potential U.S. tariff on Greenland-related exports linked to strategic minerals. The reaction followed unverified reports of former President Donald Trump threatening new trade measures targeting Greenland’s mineral resources.
- VWAGY dropped 4.8%, STLA fell 5.3%, MBG.DE declined 4.1%, RNO.DE slipped 3.7% on Monday
- Market value loss across four companies totaled $12.8 billion
- Speculation centers on Trump’s alleged threat to impose tariffs on Greenland-related resources
- Greenland holds critical mineral reserves used in EV battery production
- Investors reacted to geopolitical risk despite absence of official policy announcement
- Volatility spread to lithium and cobalt markets and affected clean energy stocks
Major European automakers experienced sharp declines in early trading Monday as investor nerves flared over geopolitical uncertainty. Volkswagen AG (VWAGY) dropped 4.8%, Stellantis (STLA) fell 5.3%, Mercedes-Benz Group (MBG.DE) declined 4.1%, and Rampart Group (RNO.DE) slipped 3.7%. The sell-off coincided with unconfirmed social media posts and leaked political commentary suggesting former U.S. President Donald Trump had threatened to impose tariffs on Greenland, citing strategic resource control concerns. The connection between Greenland tariffs and auto stocks is indirect but rooted in supply chain sensitivities. Greenland holds substantial reserves of rare earth elements and critical minerals essential for electric vehicle batteries and advanced automotive components. Any U.S. trade action targeting Greenland could disrupt mineral supply routes and elevate input costs for European automakers reliant on North American markets. Analysts noted that even speculative policy threats can trigger rapid market repricing, especially amid heightened trade tensions. The market reaction underscored the sensitivity of global automotive equities to geopolitical risk. Despite no formal announcement from the U.S. government, the mere possibility of renewed protectionist measures led to a $12.8 billion aggregate loss in market value across the four companies within hours of the news. Investors are closely watching for clarity on U.S. trade policy direction ahead of potential 2026 election-related shifts. The broader impact extends beyond automakers to industrial suppliers and commodity markets. Lithium and cobalt traders reported increased volatility, while clean energy infrastructure firms saw modest gains as investors repositioned portfolios toward perceived safe havens. The episode highlights how political rhetoric—especially from influential former leaders—can generate significant market movements even in the absence of concrete policy action.