Trump’s tariff threats suddenly look very real in the heartland of Germany’s car industry

As it stated in ☰EuropeTrump's tariff threats suddenly look very real in the heartland of Germany's car industryEmployees work on a Porsche 911 sportscar on an assembly line in Stuttgart, Germany. It's a one-way street."On Friday, Trump suggested that auto tariffs would come in response to European trade practices. The region may send many goods to the United States, but it is also a major purchaser of U.S. services, particularly in technology. "People will still buy German cars," said Andreas Kramski, chief executive of a family business that makes billions of parts annually for auto manufacturers worldwide. "It wouldn't be very patriotic for an American to say, but it's a matter of fact: German cars are just better."Luisa Beck in Berlin contributed to this report.

Trump's tariff threats suddenly look very real for Germany's car industry

For as long as Donald Trump has been president, he has been threatening to slap tariffs on foreign carmakers to stop flashy German vehicles from "flooding" American streets. On Friday, he repeated the threat and attached a specific number, tweeting about a 20 percent tariff on all automobile imports from the European Union. On Friday, Trump suggested that auto tariffs would come in response to European trade practices. The Volkswagen diesel-emissions scandal tarnished the reputation of the entire industry, and German carmakers have been considered slow to shift to hybrid or electric vehicles. Now, their business with two of their most important markets could be disrupted - Britain because of Brexit and the United States because of tariffs.

Brexit uncertainty puts thousands of jobs at risk, car industry warns

referring to At a day long automotive summit, industry leaders lined up to warn of the perils Brexit uncertainty was causing. UK car output. UK car exports. The car industry is one of the leading employers in the country, responsible for 856,000 jobs, 186,000 of which are on the production lines. He said BMW was not intending to move any car production to any of its other plants around the world but it would be "foolhardy" not to have contingency ideas.

Trump tariffs may cost US auto industry 1 million car sales a year

The projection by researcher LMC Automotive assumes carmakers would absorb at least half the cost of a tax on imported vehicles, said Jeff Schuster, senior vice-president of forecasting. If companies pass the full 25 per cent cost on to consumers, it could snuff out about 2 million sales, or more than 10 per cent of annual US deliveries, he said. She did not directly answer when asked how a 25 per cent imported vehicle tariff would impact the company. LMC estimates that GM will sell 1.16 million imported vehicles in the US this year, about 39 per cent of the company's total deliveries. If Trump follows through with the 25 per cent tariff, Schuster said US consumers would likely react in three ways.




collected by :Catlin Logan