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Carmakers: A Trade War Would Hurt Everyone
Several major carmakers worldwide say an escalating trade war between the U.S. and the rest of the world will raises prices that get passed along to consumers.
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Several major carmakers worldwide say an escalating trade war between the U.S. and the rest of the world will raise prices that get passed along to consumers.
Bloomberg News cites comments made this week at the Geneva auto show by executives from Ford, PSA, Toyota, Volkswagen and Volvo. Bloomberg adds that the auto industry may be forming a united front in opposition to President Donald Trump’s threat to impose border taxes on cars imported from Europe.
“The world is already chaos,” PSA CEO Carlos Tavares tells Bloomberg. “It’s better that we have an open world where we can trade peacefully.” Adds Toyota planning chief Didier Leroy, “There’s no winner in any trade war.”
Trump has focused on imbalanced trade with Germany. Last year, the U.S. deficit with Germany was $64.3 billion, according to the U.S. Census Bureau. That compares with $29 billion in 2000 and $9 billion in 1990. U.S. exports to Germany over the same period rose to $53.5 billion from $18.8 billion.
Trade group VDA figures the country’s exports to the U.S. total about 494,000 vehicles per year. But it says German-owned factories in the U.S. also build 804,000 cars and SUVs, about 430,000 of which are exported.
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