Mexican Media Brands
Trump Edges Closer to Tariff on Cars from EU
President Donald Trump says he is close to ordering tariffs on cars imported from the European Union in a bid to banish what he describes as the bloc’s unfair trade barriers.
#economics #labor
Share
President Donald Trump says he is close to ordering tariffs on cars imported from the European Union in a bid to banish what he describes as the bloc’s unfair trade barriers.
Last week he threatened to impose a 20% import tax on European vehicles, complaining that the EU has “long taken advantage of the U.S.” Last year 71% of the 1.61 million European cars sold in the U.S. were imported, according to Autodata Corp.
Trump has repeatedly railed specifically about Germany’s automotive trade surplus with the U.S. He wants that country’s carmakers to build more vehicles in the U.S. He also criticizes the EU’s 10% tax on imported cars, which compares with existing U.S. tariffs of 2.5% on imported cars and 25% on imported pickup trucks.
The U.S. Dept. of Commerce is already determining whether foreign-made cars pose a threat to national security, a position the U.S. used to justify protective tariffs on aluminum and steel. The department’s investigation was triggered by an earlier White House threat to levy a 25% tax on all vehicles made anywhere outside the U.S. Results of that analysis are expected around the end of July.
The Alliance of Automobile Manufacturers, speaking on behalf of 20 U.S., European and Asian carmakers, opposes higher tariffs. It estimates that a 25% import tax would boost the price of foreign-made cars by an average $5,800 and represent a $45 billion annual tax burden on consumers, Reuters reports.
RELATED CONTENT
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.