Monday, 15 October, 2018

Trump hoping to effectively block German auto imports to US?

Achtung baby: Trump wants German cars out of America US TRADE WAR: Trump ready to BAN German cars from US - bombshell report
Faye Gross | 01 June, 2018, 03:39

German automakers built 804,000 vehicles in the USA last year, according to Automotive News.

"That German cars are a thorn in the side of US President Donald Trump has been known for some time", a Google translation of the WirtschaftsWoche article says. After being elected but before he took office, Trump also pledged to place a 35 percent tax on every German auto brought into the U.S.

President Trump as soon as Thursday will announce a total ban on the sale of German luxury cars in America, and will also extend his steel and aluminum tariffs to top USA trade partners, including Canada and Mexico. No U.S. news agency has confirmed Trump's reported remarks to Macron. Both BMW and Mercedes-Benz maintain large manufacturing presences here in the United States, in part because any vehicles they build and sell here are exempt from existing import tariffs.

The magazine reports that the latter comment was made off the record - but confirmed by unnamed US and European diplomats - to French President Emmanuel Macron as an example of Trump's commitment to proposed trade policies. Although he is for free trade, but not at any price: "I love free trade, but it must be a smart trade, so I call him fair".

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It's unclear what policy Trump could wield to make this happen, and also whether it would go beyond automobiles produced outside the United States.

The US market is extremely important for luxury German automakers, and a ban on importing new vehicles would be devastating for brands like Audi, BMW, and Mercedes-Benz.

European Union passenger vehicle imports from the United States were worth 6.2 billion euros ($7.3 billion) previous year, while the bloc's USA exports topped 37 billion euros, according to Brussels-based industry association ACEA. Automotive News says German automakers built 804,000 cars in the United States past year.

The president has shown he's not afraid to get into trade wars with even America's closest allies.

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