US President Donald Trump has announced tariffs of 25 percent on car imports. “If you build your car in the United States, there is no customs,” said the Republican in the White House.
The step further heats the trade conflict between the USA and the European Union. In particular, the German auto industry should take the punitive measures hard, only the models produced in the United States can then be offered at competitive prices. Trump sees German manufacturers in the United States as unpleasant competitors. Additional distrust contains the fact that Germany's manufacturer is even more active in China than in America. Trump wants to strengthen the United States as a production location with the tariffs and reduce trade deficits.
Trump: “Automotive industry will flourish like never before”
“We will get part of the money back that we have been taken,” argued Trump, who has been complaining about other countries for a long time. The step will ensure that automotive manufacturers are increasingly producing in the United States, the US President predicted and asserted: “I think our automotive industry will flourish than ever before.”
This is the beginning of the “day of liberation in America,” said Trump. He has been talking about April 2 for weeks, where he wants to announce a large -scale customs package, will be a “day of liberation” for the country. The auto-tariffs are only a foretaste of further special levies that Trump wants to present in the coming week.
The most important car manufacturers in the USA are General Motors, Ford and Stellantis, which together make up around half of the car production in the country. The United States also imports a significant part of motor vehicles, engines and other car parts.
Almost half of all vehicles sold in the USA are imported, as the “New York Times” reported, citing data from Wall Street consulting firm Bernstein. Almost 60 percent of the parts in vehicles that are mounted in the United States come from abroad.
USA are an important sales market for Germany
The most important suppliers include Mexico, Japan, South Korea, Canada and Germany. Customs on vehicle imports are therefore likely to put a considerable burden on the German auto industry. Because the United States is its most important sales market, as the latest figures in the Federal Statistical Office show.
No other country took as many new cars from Germany as the USA: they were at the forefront of 13.1 percent of exports, followed by Great Britain (11.3 percent) and France (7.4 percent). According to the Association of the Automotive Industry, exports to the United States have increased to the previous year.
However, the entire European Union is a thorn in the side of the Republican, because the USA imports more cars from the EU than vice versa. The 78-year-old has always been excited about the EU's tariffs on auto imports from the USA over the past. While the United States only raises 2.5 percent inches on cars from the EU, the EU demands 10 percent on US auto imports.
However, the US tariffs on pickups and light commercial vehicles are significantly higher with 25 percent. Some companies therefore produce in the USA or deliver the vehicles in individual parts and put them together in the USA.
Trump uses tariffs as a means of pressure
Trump is also bothered by other EU regulations such as strict emission and security standards that can act as further trade barriers. An employee of Trump said that the 25 percent tariffs would also be placed on previously applicable tariffs for car imports.
Car prices in the United States are likely to increase with the imposition of far -reaching tariffs. Some manufacturers such as Ford Motor, Hyundai and Stellantis could temporarily benefit from the tariffs because they had many unsold vehicles at the dealers, according to the “New York Times”.
Trump specifically uses Zölle as a means of pressure in foreign policy. He has already imposed punitive measures on imports from China, Canada and Mexico. At least for the two neighbors, he partially stopped the tariffs, also at the urging of the American auto industry. The US government also imposed tariffs on all steel and aluminum imports. The Republican sees the United States disadvantaged in the trade with other countries. Most recently, worries came up on Wall Street, he could overdo it and possibly even plunge the world's largest economy into a recession.
An import customs is a tax that is levied on the border on goods that are introduced from abroad. As a rule, it pays the importing company. Experts consider tariffs to be a risky strategy to carry out a trade conflict because this primarily causes consumer prices and thus the normal citizens hit the most.
