• Auto giant BMW drops 7.9%, and Mercedes-Benz, Porsche, Volkswagen all decline more than 2%

ISTANBUL

Major steel producers in Europe saw their shares climb Wednesday after the European Commission announced a plan to protect the European steel industry, while auto shares posted declines.

Shares of Swedish steel producer SSAB rose 3.7% as of 1130GMT, German Thyssenkrupp gained over 5.4%, and Luxembourg-based ArcelorMittal climbed 4.4%.

Stocks in Austrian Voestalpine Group posted a 1.5% rise, and German Salzgitter Group rose 3%.

The climb in the steel stocks followed the European Commission’s Tuesday announcement that it plans to raise steel tariffs and sharply cut import quotas, seeking to offer “strong and permanent protection” to the EU’s steel industry.

The plan calls for raising tariffs to 50% on any surplus imports and limiting tariff-free import levels to 18.3 million tons annually, down 47% from 2024 steel limits.

But the European Automobile Manufacturers' Association (ACEA) stated Wednesday that the new EU plan to reduce import quotas and raise tariffs outside of quotas to protect the steel sector would have inflationary effects across the continent.

After ACEA's warning, European carmakers saw declines in their shares Wednesday. Stoxx 600's Automobiles and Parts index was down 1.6%.

Germany’s BMW led the losses with a 7.9% drop, while Mercedes-Benz Group, Porsche, and Volkswagen were all down more than 2%.

Shares of Renault and Stellantis were 2.5% and 0.3% lower, respectively.