Now it is solved: US President Donald Trump increases special rates of 25 percent on foreign cars! He had long threatened to increase extra rates at imported vehicles. With this step, the Republican continues the trade conflict between the US and the EU. The German car industry in particular should take the punitive measures hard.
The rates must apply to all cars that are not produced in the United States, Trump said in the White House on Wednesday. In the past, Trump is repeatedly irritated by the rates of the European Union of Auto -Import from the United States.
“Liberation of America”
This is the start of the “day of liberation in America,” said Trump. He has been talking for weeks, the April 2 – on which he wants to announce a large -scale customs package – will be a “day of liberation” for the country. The Auto-Tariffs are just a taste of further special taxes that Trump wants to present in the coming week.
Trump reprimands as wild in countries
“We strain the countries to do business in our country and to remove our jobs, our wealth and many things that have taken them away over the years,” the Republican emphasized.
Trum wants to move companies to investments in the US.
The US president also revealed that manufacturers can produce their cars in the United States. The company would now return to the United States so that they do not have to pay rates. Trump suffers from the trade shortages of his country and therefore wants to persuade companies to invest in the United States. The Republican sees the United States in disadvantaged in trade with other countries.
Recently the worries came to Wall Street, he could exaggerate it and possibly even depositing even the largest economy in the world into a recession.
US import many cars
The most important car manufacturers in the US are General Motors, Ford and Stellantis, which together make up about half of the car production in the country. The United States also imports a considerable part of motor vehicles, engines and other car parts.
Almost half of all vehicles sold in the US is imported, as the “New York Times” reported, stating data from Wall Street consultancy Bernstein. Almost 60 percent of the components in vehicles mounted in the United States come from abroad.
The US is an important sales market for Germany
The most important suppliers are Mexico, Japan, South Korea, Canada and Germany. Customs about vehicle import will therefore probably put a considerable burden for the German car industry. Because the United States is the most important sales market, as the latest figures in the federal statistical office appear to be.
Trump has announced or set a number of rates since he took office in January. Since 12 March, new American rates of 25 percent have been applicable to steel and aluminum import.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
