Trump Threatens German Car Companies with 35% US Import Tariff, Carmakers Respond

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by Amna El Tawil
 
The incoming president, Donald J. Trump, has warned German car companies they should start producing more vehicles in the United States. If not, they will face a 35% import tariff.
 
Mr. Trump criticized BMW, Daimler, and Volkswagen in remarks in the German newspaper Bild saying: “If you want to build cars in the world, then I wish you all the best. You can build cars for the United States, but for every car that comes to the USA, you will pay 35% tax.”
 

 
He continued: “I would tell BMW that if you are building a factory in Mexico and plan to sell cars to the USA, without a 35 percent tax, then you can forget that.”
 
Reuters reports: “Volkswagen (VW) shares closed down 2.2%, while BMW and Daimler’s shares ended 1.5% lower.
 
Under pressure to deliver on campaign promises to revive U.S. industrial jobs, Trump has turned his fire on carmakers that use low-cost Mexican plants to serve the U.S. market. He has also warned Japan’s Toyota (7203.T) it could be subject to a “big border tax” if it builds its Corolla cars for the U.S. market at a planned factory in Mexico.
 
All three German carmakers have invested heavily in Mexico, but also pointed out on Monday that they manufacturer in the United States as well.
 
BMW executive Peter Schwarzenbauer told reporters the company was sticking to plans to invest around $1 billion in a new plant in Mexico, which is due to go into production in 2019 and create at least 1,500 jobs.”
 
However, German carmakers aren’t going to take these statements so easily. According to Fox Business, BMW is standing by its decision to build a new $1 billion factory in Mexico, saying the facility will supply cars to global markets. BMW also noted that its assembly plant in South Carolina, where the company is spending $1 billion to increase capacity, is now the company’s largest in the world.
 
They said in a statement: “The issue is about commitment and BMW made a significant commitment to the U.S. when it began manufacturing vehicles in America more than 22 years ago.” According to the company statistics, BMW exports 70% of its U.S. production.
 
President of the German Association of the Automotive Industry (VDA), Matthias Wissmann, said in a statement: “For German producers, the United States is not only the second largest export market but also an important production site from which the world market is supplied. One can only warn against the global rampant tendencies towards protectionism. In the end, all nations will be harmed, despite seemingly short-term benefits.”
 


 

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15 thoughts on “Trump Threatens German Car Companies with 35% US Import Tariff, Carmakers Respond

  1. I’m one of the innovators that voted for Trump. Germany? Japan? China? Russia? That’s the least of Trump’s problems.
    Until Trump brings Israel to justice for masterminding and perpetrating a Jewish ritual mass murder on 9/11, and ends the fed (Israel’s cash cow), ends the taxs and debt slavery (Jewish communism), files bankruptcy on the fraudulent loans “the swamp” made, and returns property rights to owners, he’s got nothing from US. We’re not lifting a finger.
    Trump should have put America first during his first one hundred days instead of putting Israel first.
    When Trump invited Israel to the inauguration after Israel mass murdered 3,000 people on 9/11 to provoke a profitable false flag revenge war between the US and the Arab world, he broke the country worse than it was with Clinton.
    How? It’s up to us innovators to rally the troops, bring the democrats around, snip, done. Not happening. Instead, we’re just gonna unravel the whole thing…”do it yourself”. We are gonna sit back and watch Israel’s evil plan implode.
    And we ain’t negotiating. So, it’s back to square 1. The US government has been infiltrated and subverted by Jewish communists, Trump is a con-man and a front-man for Israel’s Operation Northwoods, the “plan to enslave every man, woman, and child” JFK warned us about, Jewish communism, no!
    And Donald J. Trump, because you lied to us and put Israel first during your “elect” period, I’ll never vote for you or one of your family or associates ever again.
    You suck for lying to America. Donald J. Trump, you are the swamp, u, u…pig.

      • lol. Zero argument, nothing but insults. Thank you for showing us what idiocy truly is — you. I’ll informed and rude. You’re like a chimp in the zoo throwing poop. Your mom’ma did not learn you well.

    • I have to tell you that the Trump family has German and Jewish roots. Trumps son in law is an outright Jew and will be part of the White House staff and don’t forget that Trump already told us the US will move its embassy to Jerusalem. Trump threatens companies if they don’t leave Mexico f. e. but thinks it is good that key US industries stay in Israel?

      • As an Israel firster, Trump will inherit an economy that’s DOA on 1/20/17. If he drains the swamp for real and lifts the hemp prohibition without regulation and ends the fed and everything else that goes along with the fed…taxation without representation, prisons for profit, etc., when Netanyahu is in handcuffs answering with his life for his role in 9/11, then Trump’s got an economy to work with. Otherwise, Trump’s karma is shoot for putting Israel first at the inauguration and he’s lost his momentum, kaput. And, you can bet your a$$ he’s on top of exactly what I am saying and is trying to figure out how to make this right… …Netanyahu, in handcuffs, period.

    • And you know this how? He isn’t even president yet and all of these internet experts somehow know exactly what he is going to do and what the outcome will be. Hey SFB Jim, what lottery numbers should I play?

  2. Hey Trump, who is going to buy all these new cars .. Americans can’t afford shit anymore , and the world , thinks your an asshole because your one of those “Israel matters” fuckwits that got the country into the position it is today …….

  3. Trump is right. Tarrifs are imposed on imported goods that are in competition to
    local made goods. Take for instance, New Zealand had duties levied on imported
    cars years ago, but they were removed when overseas car companies stopped
    producing cars in New Zealand. I believe that there is a tarrif on imported camper vehicles as they are produced in NZ. Trump would be doing the right thing- NZ
    did the right thing.

  4. Trade war drives inflation without job creation. People just tighten up causing slow down in jobs and wages.
    This could become a self imposed downward spiral.
    Or
    We’ll just spend more for American products and American companies will hire more
    Hahahaha… Do we have more to spend to begin with? Last I heard, the 1%ers took everything

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