Shares of Europe's biggest carmakers traded lower on Wednesday, amid concern that the European Union's latest efforts to protect the domestic steel market could threaten the region's auto sector.

The European Commission, the EU's executive arm, announced on Tuesday that it plans to hike steel tariffs and sharply cut import quotas, seeking to offer "strong and permanent protection" to the region's steel industry.

The proposal includes a push to limit tariff-free import volumes to 18.3 million tons a year, reflecting a reduction of 47% compared to 2024 steel quotas — and doubling tariffs to 50% on any excess imports.

The planned measures have not got down well within Europe's automotive industry.

Europe's Stoxx Automobiles and Parts index traded 1.8% lower at around 12:14 p.m. London t

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