Currently reading: EU warns Trump that raised car import tariffs would hurt US
Donald Trump’s raised import tax would harm his own country’s economy, according to the EU

The European Union has claimed that Donald Trump’s plans to impose higher import taxes on cars to the US would harm his own country’s economy.

Trump’s government is threatening to raise tariffs for EU-made cars to 20% to 'rebalance' the EU's 10% tariff on cars imported into its region. The US's current, long-standing rate stands at 2%.

But in a submission sent to the US Department of Commerce, the EU said that such an increase would be to the detriment of the US’s own interests. It said that car imports from Europe to the US had grown at the same pace as demand from the US market, showing that they were filling a gap that domestic output could not, rather than eating into domestic sales as Trump has suggested.

The document also said that European car makers in the US make about 2.9 million cars per year, accounting for 120,000 jobs directly involved in the manufacturing process, or 420,000 jobs if non-direct roles such as car parts production and retailers are included.

European commissioner: we will react to US auto trade tariff

In addition, the submissin suggested that these roles would be placed under pressure if a tariff raise had the predicted negative impact on supply of vehicles and parts from the EU. It calculated that a 25% tariff would slash an initial $13-14 billion off US gross domestic product, with no predicted improvements to its own incomes.

Meanwhile, the EU argued that the US’s comparably low car import tariff was countered by higher rates on other vehicles, such as lorries.

If the US government imposes a higher tariff rate, the EU said it would respond — as it did to the recent hike in import costs for steel and aluminium — with its own measures.

China slashes car import tariffs to boost international trade 

Nevertheless, European car makers will be concerned about the uncertainty ahead. The US is a major source of demand for many brands in the EU; the biggest EU car company in the US, the Volkswagen Group, sold 55,786 cars there last month alone. Jaguar Land Rover grew its sales in the US by 9% last year to 128,097 units.

Several European car makers already build their vehicles in the US, with the most recent example being the BMW X7, which will be exempt from tariff changes. However, imports still account for the vast majority of European car sales in the US.

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Peter Cavellini 3 July 2018

Trump saga....

 Trump is can only be as good as his advisors, he couldn’t put his own People in his inner circle the law doesn’t allow that, but, it’s more to do with his style his personality that rubs 99% of the Planets population, he try’s to run the World like a business, he’s a Gordon Geco type businessman, well, it doesn’t isn’t going to work for much longer, so, he’s got Kim Jon use to sign up for no nukes but the rest of the problems he’s created?import tariffs?.... defo a big bad backwards step.

TheBritsAreComing 2 July 2018

Good on Trump!

I hope he brings Germany's big 3 to their knees. Bunch of market-cheating imperialistic scumbags.

concinnity 3 July 2018

VW, Mercedes Benz and BMW

VW, Mercedes Benz and BMW make many of their cars for the US market in the USA. And unlike the US owned manufacturers, they then actually export from the US to the rest of the world.

Trump is such an idiot, he doesn't realise how stupid he is.

Trade wars are battles of wits, an endeavor in which Trump is at best, only half armed.

These tariffs will bring his downfall.

Cheltenhamshire 2 July 2018

Trump is a moron.  Look at

Trump is a moron.  Look at Harley, first he blustered on about them being made in America .... despite them also being made abroad,  primarily because the idiot withdrew from the Pacific trade agreement which meant it was cheaper to set up abroad .... the market was happier to buy a Harley made not in the US if it was affordable.  The US factory was to provide the rest, for the US and Europe.  But of course Dump being the dribbling simpleton he is decided to piss about with the EU.  Who then make Harley's 20% more expensive.  Now it is cheaper for them to make them in Thailand and export them to Europe ..... thus reducing production in the US as now they only produce for the US market.

Genius.  The guy is totally retarded.

eseaton 2 July 2018

He may be crass and often

He may be crass and often offensive, but everyone who doesn't like him calls him a moron. And then loses to him.

Perhaps if people stopped being so self-satisfied by their own wisdom and talent, they might actually begin to match his success.

Cheltenhamshire 2 July 2018

eseaton wrote:

eseaton wrote:

He may be crass and often offensive, but everyone who doesn't like him calls him a moron. And then loses to him. Perhaps if people stopped being so self-satisfied by their own wisdom and talent, they might actually begin to match his success.

If my dad gave me a million dollars I am sure I too could have bought some property low, did it up (not having to worry about the cost of living as daddy was paying that too) and sold it when property went high.  And then reinvested.  Money begets money and money makes money.  Perhaps you should remove your tongue from his arse before you have to pay an import duty.