Trump Says Finishing U.S. Study On Tariffs On Cars From EU

[franco + 96]

U.S. President Donald Trump said on Tuesday the government was completing a study about increasing import tariffs on cars from the European Union and suggested he would take action soon. On Friday Trump threatened to impose a 20 percent tariff on all imports of EU-assembled cars, a month after his administration launched an investigation into whether auto imports posed a national security threat. On Saturday, a senior European Commission official said the EU would respond to any U.S. move to raise tariffs on cars made in the bloc. The U.S. Commerce Department has a deadline of February 2019 to investigate whether imports of automobiles and auto parts pose a risk to U.S. national security.

[ThunderBlade + 231]

Better hope he doesn't go through w/ 20% on EU cars, as it will most likely effect EU made parts, which are a high number of brands (like the American lines owned by Fiat or have precision parts made in Germany (which GM uses).

[Pavel + 384]

irrational...  And now Harley D is moving EU manufacturing to there vs shipping due to the tariff ‘war’. That’s more jobs leaving the US.

[rainman + 263]

Trade wars doesn't work. We now have Mexico, Canada, the European Union, India, China, and Turkey using retaliatory tariffs...

[jpZelabal + 63]

I believe It's just the beginning. This will hurt all our allies but, it'll hurt U.S. more. And, it's not fair to U.S. workers...

[Jan van Eck + 7,558]

The manufacturers that will get into trouble if such a tariff wall is installed will be the luxury car makers.  The real question will be: how much of a tariff will the US buyer tolerate before he switches to "something else"?  I predict the three companies that will be hurt are BMW, Volvo,  and Mercedes. And the reason is that these mfrs build to the market segment that is at the upper end of price sensitivity, but not autos such as the Bentley that are so far into the stratosphere that the buyers don't much care. 

Builders such as Volkswagen will show some price appreciation, but the low-end Volks will likely have VW eat the tariff.  And then you have marketers where it won't make any real impact as those products are not imported to any extent, if at all:  Pugeot-Citroen, Skoda, SEAT, Fiat.  When was the last time you saw a Skoda on the road?  

Edited June 26, 2018 by Jan van Eck

[Ja’Nako Bezze + 36]

Considering his car collection, I wouldn't be shocked if he exempt Italian and German carmakers. Or should he pay taxes retrospectively?

https://autowise.com/donald-trumps-most-unusual-car-collection/ 

[Cokiga Damke + 53]

15 minutes ago, Jan van Eck said:

The manufacturers that will get into trouble if such a tariff wall is installed will be the luxury car makers.  The real question will be: how much of a tariff will the US buyer tolerate before he switches to "something else"?  I predict the three companies that will be hurt are BMW, Volvo,  and Mercedes. And the reason is that these mfrs build to the market segment that is at the upper end of price sensitivity, but not autos such as the Bentley that are so far into the stratosphere that the buyers don't much care. 

Builders such as Volkswagen will show some price appreciation, but the low-end Volks will likely have VW eat the tariff.  And then you have marketers where it won't make any real impact as those products are not imported to any extent, if at all:  Pugeot-Citroen, Skoda, SEAT, Fiat.  When was the last time you saw a Skoda on the road?  

Most of Skodas' I saw were on the side of the road. But still, better than Saturn, Pontiac...

[Guillaume Albasini + 851]

The top ten european carrmakers by may 2018 sales in the US :

31,211 Volkswagen

30,077 Mercedes-Benz

26,662 BMW

19,104 Audi

9338 Volvo

5005 Porsche

4226 Mini

2377 Alfa Romeo

1441 Fiat

950 Maserati

 

US tariffs will only impact german and italian manufacturers but Volkswagen Mercedes and BMW are already producing in the US between 15 and 33% of the cars they sold on the us market. Volvo is a swedish manufacturer owned by chinese carmaker Geely and it's possible that some of the Volvos sold in the US are imported from China.

French carmakers not really selling cas in the US will not be affected by the US tariffs.

 

The only automaker that will not be affected by the US tariffs imposed on car imports is the only one that assembles 100% of its U.S.-sold cars domestically : ... Tesla !

All the other US carmakers produce some of their models abroad (Canada, Mexico...).

http://time.com/4677817/american-cars-brands-manufacturing/

 

[Miko W. StandingBear 0]

On 6/26/2018 at 8:44 AM, franco said:

U.S. President Donald Trump said on Tuesday the government was completing a study about increasing import tariffs on cars from the European Union and suggested he would take action soon. On Friday Trump threatened to impose a 20 percent tariff on all imports of EU-assembled cars, a month after his administration launched an investigation into whether auto imports posed a national security threat. On Saturday, a senior European Commission official said the EU would respond to any U.S. move to raise tariffs on cars made in the bloc. The U.S. Commerce Department has a deadline of February 2019 to investigate whether imports of automobiles and auto parts pose a risk to U.S. national security.

Don't need a study,I can tell you right now that it is.Any thoughts to the contrary is naive, and delays the 'finding solutions process' which is overdue as it is.