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Trump’s plan to make European cars more expensive has a fatal failure

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Trump's plan to make European cars more expensive has a fatal failure

President Trump wants Americans to buy less European cars and European to buy more American cars. To accelerate his impossible dream, on Sunday night he said that the new tariffs on EU companies “would definitely happen.” (Those who are in Mexico and Canada have been I stayed for now.) Its threat of 25 percent tariffs on, among other things, EU cars imports could cause an automotive commercial war.

Market reaction to this was predictable: European Automobile manufacturers actions fell yesterday. Stellantis and Volkswagen fell 6.8 and 5.6 percent respectively. Volvo fell by 6.5 percent, while Mercedes Benz, BMW and Porsche lost between 3.6 and 4.3 percent.

Despite his Bavarian ancestryTrump has a special meat with German cars. In 2018 report of German magazine WirtschaftswocheTrump told the French president Emmanuel Macron that he didn’t want more Mercedes rolling down the fifth Avenue in New York. And, according to several unidentified European and American diplomats, Trump also asked Macron why Germans buy so few Chevrolets, but US drivers choose BMWs.

The precision of this conversation was confirmed in November last year when former German Chancellor Angela Merkel Corriere della will Trump was “obsessed with the idea that there were too many German cars in New York.” It could well have been among them as the European cars that the president has had Apparently, it includes a Mercedes-Benz SLR McLaren, Lamborghini Diablo and Rolls-Royce Silver Cloud.

It is a strange obsession because a Mercedes-Benz seen by Trump rolling along the fifth avenue will probably have been made in Alabama. There are also BMW and Gigantic Volkswagen factories in the United States, building large cars adapted to US tastes.

Trump has demanded that automobile companies abroad must manufacture from now on in the United States apparently oblivious to the fact that since the 1990s, millions of cars have been manufactured in the United States by European brands, especially Germans.

Volkswagen said last year that he is investing $ 10 billion in the United States, divided between his Chattanooga plant and a Joint company with the EV Rivian manufacturer. South Carolina has the largest BMW assembly plant in the world, made 396,000 cars there last year, and has been so successful for 30 years that BMW’s global CEO, Oliver Zipse, recently received a Economic Prize of the State Republican governor.

Porsche and Daimler also do in the United States. German car manufacturers in Alabama, South Carolina, Texas and other states that vote to Trump directly employ about 50,000 US workers, with providers of even more employee and concession and services centers.

“Making a distinction between what an American car is and what is a German car makes no sense.” Jacob KirkegaardA European trade expert at the Peterson Institute of International Economics, based in Washington, DC, to Wired.

There is also an international combination of car brands. Chrysler, historically one of the “three great” American car manufacturers along with GM and Ford, was bought by Fiat of Italy and, since 2021, has been part of the Amsterdam-Contados. Stellantis groupowner of the allegedly American brands Dodge, Jeep and Ram Trucks.

(Tagstotranslate) Electric vehicles

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