Donald Trump has threatened to levy import tariffs of 20% on European cars. Cars made in America and imported to the European Union international locations are at present topic to import tariffs of 10 per cent, but goods traded from Europe to the US only face a 2.5 per cent levy. While the European Commission has previously voiced a need to “remove these duties and other boundaries to trade”, Trump's frustration at import boundaries seems to have provoked his latest warnings. European automotive stocks fell an average of 1% following Trump’s tweet, with BMW shares down 2 per cent, Mercedes down 1.Four per cent, and Volkswagen down 1.1 per cent, in line with Thomson Reuters information. The remarks from the president observe earlier threats reported in the German media that the Trump was threatening to impose a 25 per cent import tariff on European luxurious cars. Daimler, the mum or dad company of Mercedes, issued a profit warning earlier this week following issues over Trump’s commerce disputes with China, that are set to see US import tariffs of 25 per cent positioned on certain Chinese goods. This led to to fears China would impose retaliatory tactics, making US-made examples of the Mercedes GLE-Class, GLS-Class and C-Class more expensive to export to China. Trump’s latest utterance can also be thought to be related to contemporary trade tariffs imposed by the EU on US goods like bikes, denims and whiskey, themselves a reaction to US tariffs on EU steel and aluminium. What do you think the long run holds for European automobile imports to the US?
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