American president proposes trade war to protect homegrown interests; car makes respond by saying they employ hundreds of thousands of US workers

American president Donald Trump has threatened to tax imported cars from the European Union as part of his increasingly vehement rhetoric around trade tariffs.

America is the largest export market for cars built in the EU. Statistics show that  £171 billion worth of cars were exported from the EU last year, with the US the destination for 25% of them. Of those cars, just more than half were exported by German car makers.

Trump’s comments come as part of a wider focus on imported goods, including proposed tariffs on imported steel and aluminium. The move is part of his ‘America First’ campaign, in which he has pledged to protect American interests and jobs. He has described existing trade deals that don’t favour America as “very stupid”.

Donald Trump vs the car industry (from January 2017)

The specific threat to the car industry was made in a Tweet, which read: "If the EU wants to further increase their already massive tariffs and barriers on US companies doing business there, we will simply apply a Tax on their Cars which freely pour into the US.

"They make it impossible for our cars (and more) to sell there. Big trade imbalance!" [sic]

In a second Tweet he added: "Our jobs and wealth are being given to other countries that have taken advantage of us for years. They laugh at what fools our leaders have been. No more!"

As well as widespread condemnation from car makers – who have pointed out that they manufacturer their most successful models in the US already, employing hundreds of thousands of Americans directly and indirectly – Trump’s comments have brought a mixed reaction from his political allies and opponents.

In addition, Canadian prime minister Justin Trudeau described tariffs as "absolutely unacceptable" and hinted that any tariff would be met with strong resistance and potentially retaliatory action. Brazil, Mexico and Japan have hinted at similar moves.

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Comments
34

4 March 2018

I suppose if tarriffs are imported and they're high, there's probably nothing stopping VW, BMW and Mercedes kitting out their existing factories to build some of their cars which are currently imported in to the US. A bit like how they tried to massively tax imports of the Bombardier C Series plane but then Airbus essentially bought the plane from Bombardier and, cunnigly, will eventually build it at their USA factory once the C Series assembly line is completed there. Therefore avoiding tarriffs, although the Trump administration are trying to find a way around this by saying Airbus and Bombardier are foreign companies so their products should be taxed. Does that mean then they'll also have to tax cars made by foreign companies in the USA of which there are loads and whose cars are best sellers there, like Nissan, Toyota and Honda, not to mention VW, BMW and Mercedes.

 

As for other European cars imported, there's only Fiat, Alfa, Volvo and Jaguar in terms of mainstream production, otherwise it's all the high-end cars where they already have high prices high enough to the point where a tarriff probably wouldn't put off a wealthy buyer.

4 March 2018
Trump wrote:

"They make it impossible for our cars (and more) to sell there"

America make it impossible for their cars to sell here - that's because they're shit.

4 March 2018
scotty5 wrote:

Trump wrote:

"They make it impossible for our cars (and more) to sell there"

America make it impossible for their cars to sell here - that's because they're shit.

Shame that everything the man tweets merely confirms a phrase that his late Scottish mother,who was from Lewis, might have told him: "Y'er a bigger bum than twa' erses"

4 March 2018
scotty5 wrote:

Trump wrote:

"They make it impossible for our cars (and more) to sell there"

America make it impossible for their cars to sell here - that's because they're shit.

Over large, badly built steaming piles of shit.....

Steam cars are due a revival.

5 March 2018

You're cluless.

5 March 2018
scotty5 wrote:

Trump wrote:

"They make it impossible for our cars (and more) to sell there"

America make it impossible for their cars to sell here - that's because they're shit.

I'm willing to bet you've never driven an American car, much less sat in one. Let's hear your personal reviews on a Mustang GT350, a Corvette Z06, a Cadillac CTS-V, Tesla S, Camaro SS... 

 

4 March 2018

American cars don't sell in any quantity because they don't suit European tastes - that's not something that tariffs will fix.

The 25% import tariff will of course means the Buick Regal, built in Germany, will go up massively !!!

4 March 2018

    European Cars are a small percentage of our output to the States,only high end SUV and sedans are bought there, Cars from Mercedes, Porsche ,BMW  because their better built than some of the Tanks they pass off as luxury sedans, and anyway, if a Trump keeps going the way he is, America is going to alienate themselves because of Donald Trumps tantrums.......!!!!

Peter Cavellini.

4 March 2018

Ford? US company

Jeep? US/Italian (Italian owned). Chryslers, they tried as Lancias and Dodge as Fiats but everybody hated them

Maybe the moron didn't know that Chevrolet/GM sold out and quit the market and such Chevrolets that they sold were built in Korea.

Cadillacs were sold with the help of SAAB but they withdrew.

Yet all the fat Drumpfass can do is say he hasn't seen enough Chevrolets in Europe. 

What numbskulls elected this guy?

5 March 2018
rmcondo wrote:

What numbskulls elected this guy?

That elected George Dubbleya - twice!

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