(Reuters) – The German automotive equipment supplier Continental fell on Tuesday after having announced to anticipate a gloomy automobile market in 2025, while the group assesses the potential impact of the new customs tariffs of Donald Trump on its activities in North America, resulting in a sharp drop in stock exchange.

In Frankfurt, around 10.45 a.m. GMT, the title fell 8.7% to 63.38 euros.

“The prospects for exercise 25 are too low, which should weigh on the action,” a local trader told Reuters before the bell.

The group provides for a turnover of 38 to 41 billion euros this year, with an adjusted profit margin of 6.5% to 7.5%, almost identical to that of the previous year.

Continental has reduced its two -time sales forecasts last year due to the weakness of industrial demand in Europe and North America, and has a difficult new year for car sales.

The group expects stagnation of world production of private cars and light utility vehicles.

In addition, the imposition of new American customs duties on products from Mexico and Canada is likely to increase business concerns, which employs 38,000 people in these three countries, as for its prospects.

Continental cannot absorb additional customs duties itself and is in talks with its customers on how to manage costs, Olaf Schick said on Tuesday, while 50% of its car tires sold in the United States are imported from abroad.

“We cannot accept additional customs duties,” he warned.

It is too early to say if the company will relocate its production, added Olaf Schick.

Continental said they plan to start discussions on the future of its factories in Mexico and Canada once the customs duties have been determined.

The group’s annual operating profit was up 6.6% to 2.7 billion euros despite a 4% drop in sales to 39.7 billion euros.

Analysts were tabling on an EBIT of 2.64 billion euros in a consensus compiled by the company.

(Andrey Sychev and Victoria Waldersee, Mara Vîlcu for the , edited by Augustin Turpin)

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