Trump Tariff Threats Targeted German Automakers: Report

Trump Tariff Threats Targeted German Automakers: Report

0 comments 📅31 May 2018, 17:30

At his April assembly with French president Emmanuel Macron, US President Donald Trump said he would affix to his guns on a policy whose aim was to keep German cars from rolling down Fifth Avenue.

That’s according to a account from German magazine, Wirtschaftwoche, which claims that President Trump was purpose on keeping German vehicles out of the US market through burdensome tariffs of 25%, allowing he had threatened to impose 35% tariffs in 2017.

While the president is reported to have in use accustomed to Mercedes in his rhetoric, such tariffs would have had an especially negative efficacy on Audi and Porsche, which, unlike BMW and Mercedes, has no US factories. Volkswagen, too, would possess been at risk since only the Passat and Atlas are currently made in the US.

Such open-hand tariffs would cost German automakers $5.25 billion and would effectively scupper the trade case for selling in the US. This would affect the automotive landscape, since Germany is the EU’s biggest exporter to the US.

Most recent year, the Volkswagen Group delivered more than 975,000 vehicles to the US (whereas all German manufacturers built objective 804,000 cars in the US last year). That accounts for 9% of the Group’s worldwide sales.

The value of EU exports to the US, in the meantime, was worth $43 billion, reports Automotive News. American exports to the EU, though, only accounted $7.3 billion—although GM was in the middle of pulling out of the European call last year and has now done so.

As it stands, European automakers still have an impunity from Trump’s tariffs, but Trump is expected to decide whether or not to end that release today, which could end Audi’s unbroken streak of sales records for correct.

[source: Wirtschaftwoche via Automotive News]

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