Is Trump shifting tariffs on German cars?
Daimler, BMW, Volkswagen & Co. are hoping for more time
US President Donald Trump’s tariff and foreign trade policy is constantly shaking international trade. Now Germany is back in the President’s crosshairs.
He repeatedly threatened to impose high import duties on German passenger cars. The deadline is 18 May. But now US managers are increasingly saying that Trump may be extending the deadline. People are talking about six months.
But it is unclear whether the president will actually postpone the decision regarding car tariffs. The industry insider did not want to be named either. The news agency Reuters also reports that a decision cannot be ruled out until 18 May.
Punitive tariffs on passenger cars would have dramatic consequences
Donald Trump received fierce criticism for possible high import fees. Congressmen and senators from different states worry about thousands of jobs at the big foreign manufacturers. Some of them operate large plants in the USA.
The major German carmakers BMW, Daimler and Volkswagen are also warning of the economic consequences of punitive tariffs on passenger cars. Such a measure would affect the entire German export industry.
Why Trump is now thinking about a shift is not known. One reason could be that several manufacturers have promised to invest large sums in the US locations in the future, for example the US company General Motors. The automaker wants to invest 700 million dollars in three plants in Ohio.
But it is not only a new escalation with the European Union that threatens – the trade dispute with China is also constantly taking on new dimensions. After all, talks have restarted with Japan and the EU.