European automakers skid to 3month lows
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May 22 Reuters European stocks slipped on Wednesday, hurt by a selloff in automakers following a report about possible Chinese tariffs on imported cars and a strongerthanexpected British inflation data further dampening the mood.

European automakers fell 1.9 to a morethanthreemonth low, with shares of MercedesBenz, BMW and Volkswagen falling in the range of 1.1 and 2.3.

China should raise its import tariffs on large gasolinepowered cars to 25, a governmentaffiliated auto research body expert told China39;s Global Times newspaper as the country faces sharply higher U.S. auto import duties and possibly additional duties to enter the EU.

The deadline is approaching for the EU to announce the conclusions of its investigation into Chinese EV subsidies, and this move by China is clearly a warning shot that if the EU takes action then it can expect a similar response from China on EU car exports, said Stuart Cole, chief macro economist at Equiti Capital.

The European Commission launched an investigation in October into whether fullyelectric cars manufactured in China were receiving distortive subsidies and warranted extra tariffs. The EU could impose provisional duties in July.

The continentwide STOXX 600 index dipped 0.3, with Britain39;s FTSE 100 leading losses in the region after data showed UK inflation fell by a lessthanexpected 2.3…