Trump threatens 20% tariff on all car imports from the EU

[demmiblue]

Source: CNBC

President Donald Trump tweeted another tariff threat Friday, this time targeting imported autos from the European Union.

The president said on his feed that if the EU does not removed duties on U.S. cars, then the U.S. will have no choice but to act.

The threat comes just two days after Commerce Secretary Wilbur Ross said no decision had been made on whether the U.S. would extend the volley of tariffs it has imposed on other goods to the automobile industry.

The 20 percent tariff actually would be a bit smaller than the 25 percent levy Trump had previously threatened. The president has railed against unfair tariffs slapped on U.S. goods in other countries and has vowed to reduce the trade deficit the country has with other nations, particularly China.

Read more: https://www.cnbc.com/2018/06/22/trump-threatens-20-percent-tariff-on-all-car-imports-from-the-eu.html

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Link to tweet

[BeyondGeography]

1. And if they're manufactured here?

[Sophia4]

2. Then they aren't imported, are they?

[BeyondGeography]

8. Some numbers

German automakers sold 1.35 million vehicles in the United States in 2017, about 8% of total US car sales. Of those, only 494,000 were exported from Germany to the United States — 25% less than in 2013, according to the German carmakers association.

Most of the remainder were made in the United States and in Mexico, which has a free trade agreement with the United States. GM (GM) and Ford (F) also make cars in Mexico for delivery to the United States.

Trump would likely have to pull out of NAFTA, the trade deal between the United States, Mexico and Canada, to prevent automakers from building vehicles in Mexico and shipping them across the border.

http://money.cnn.com/2018/06/11/news/economy/german-cars-trump-trade/index.html

They have an easy workaround unless he kills NAFTA too while he's at it.

[Shipwack]

24. Give him time...

“They have an easy workaround unless he kills NAFTA too while he's at it.”

Give him time. There are only so many hours left in the day after playing golf and tweeting...

[BumRushDaShow]

25. Yeah he's trying to kill NAFTA via "death by a thousand cuts". nt

[BeyondGeography]

26. Replacing a despised present with an idealized version of the past in an imaginary future

Fritz Stern's line about the Nazis lives on.

[bucolic_frolic]

3. "no choice but to act"

Sounds like Hitler's excuse for invading Poland.

[GusBob]

4. "it great companies"

me good president

[underpants]

16. Crazy with the ,s but no '

It damned shame

[Bernardo de La Paz]

5. Trump's easy way to reduce trade deficits: Reduce trade with everyone!

Since he has a six-front trade war going now, he will MAGA Make America Go Alone as everybody else increases trade with each other and reduces trade with the US.

If US exports and imports fall overall by 50% then, voila!, the trade deficit will fall by 50%. Trump will claim victory as the economy slumps.

[Voltaire2]

14. Yeah it seems clear that we get the cumulative

pain while each of Trump’s targets suffers only their tarrifs.

[beachbum bob]

6. I am sure the markets will like this move too, fucking idiot

putin is even more overjoyed

[beachbum bob]

7. Gotta be enjoyable being a GOP senator or congressperson now more than ever

as trump single handly crashes our economy and we all get to blame them for letting it happen


red wave? right...

[safeinOhio]

9. Is the money from the tariffs going to

shore up MC SS?

just asking.

[atreides1]

22. No

GOP plans to cut Medicare and Social Security.


https://www.washingtonpost.com/news/business/wp/2018/06/19/house-gop-plan-would-cut-medicare-social-security-to-balance-budget/?noredirect=on&utm_term=.afadef8916d7

[safeinOhio]

36. But he said the tax cuts would more than

pay for themselves with all the growth. I thought that would pay for Social Security and Medicare. They lied?

[turbinetree]

10. So all of the chumps in Duluth that was cheering this asshole on I wonder if they know

where there taconite goes too..................

http://www.duluthnewstribune.com/business/4322127-third-twin-ports-shipped-taconite-leaving-us

[kimbutgar]

11. This will affect rich people more than working Americans

I can’t afford a BMW, Mercedes or An Alfa Romeo car. The average American making $55,000 a year can’t afford them either. Leasing is probably $400 minimum a month for these cars. Twitler is only hurting his rich donors.

[SoCalNative]

23. Fiats, VW

are also imported from the EU

[mwooldri]

31. The Jeep Renegade...

Proudly made in... Italy.

http://www.businessinsider.com/jeep-renegade-all-american-suv-made-in-italy-2017-2

Edit to add: Ford Transit Connect.

https://en.wikipedia.org/wiki/Ford_Transit_Connect#Second_generation_(2013%E2%80%93present)

Interesting to note that Ford USA imports the Ford Transit Connect as a Passenger Van, and then converts back to a goods van in the USA. Why? Avoid a 25% tariff that the USA imposes on imported trucks.

[TreasonousBastard]

12. He's an asshole. Mercedes, BMW, and VW build some models here with imported parts...

how is that calculated?

GM no longer owns Opel, but some cars, like the Buick Cascada, are built by Opel in Slovakia, or some damn place. How's that work now?

And what about Fords and Chevys built in Canada with some European parts?

Land Rover and Jaguar will be even more interesting. They are now owned by the Indian Tata Motors, with manufacturing split between England and India, but Tata has plans to increase Chinese manufacturing. Maybe even move it all there. With or without Brexit, how do you figure the import tax on your new Discovery?

C-class Mercedes' are built in Alabama, so the question is, if you really, really want that $60,000 E-class convertible, will you pay an extra 12 grand for it? There is no comparable American or Asian choice.

[Scurrilous]

13. LOL

We're on a highway to hell!

[Botany]

15. Trump is working to destroy America from the inside

Watch the S.P. tank today.

[duforsure]

17. He's doing this to hurt us

Then claim its these others countries , and we're being victimized by unfair tariffs, when we are not at all. Once again designed for him to claim he's fighting for us and winning for PR, because its all BS again. He's doing this over and over hurting this country and our GOP in Congress stand by and watch.

[MiniMe]

34. I was gonna say, the only people this hurts are the consumers

[pwb]

18. This will affect American car factories too.

If it also applies to parts.

[PatrickforO]

19. Wow! That is REALLY going to help everyone...

decide they have had a gut full of Trump and his profoundly stupid policies, register to vote and clean house come November.

The guy is just SO ignorant. Stumbling from one policy disaster to another, a new outrage every day, it seems.

[sinkingfeeling]

20. Let's put a 50% tariff on anything with "Trump" on it.

[Oneironaut]

21. Stop already, for fuck's sake.

This is all about Drumpf’s ego. He’s going to crash the economy.

[beachbum bob]

27. so he makes a bmw cost 20% more for an american to own? Does think an american intent on a BMW going

to buy a Chevy?

[DesertRat]

28. BREAKING: BMW, Volkswagen, Fiat Chrysler, Mercedes owner Daimler all drop sharply

Link to tweet

CNBC: BREAKING: BMW, Volkswagen, Fiat Chrysler, Mercedes owner Daimler all drop sharply after Trump threatens 20% tariff on EU cars

[GETPLANING]

29. Wait 'till he figures out that many Fords, Chryslers, and General Motors cars are made in Mexico and

Canada. Some Buicks are actually Opels, made in Germany. And why do US car manufacturers build their plants in Canada and Mexico? Because healthcare costs are half what they are here in America, for starters.

[mwooldri]

32. Get this one... Buick Envision. Built in China.

https://en.wikipedia.org/wiki/Buick_Envision

Buick Encore... Made in Korea. As is Chevy Trax. Basically a rebadged Opel Mokka. https://en.wikipedia.org/wiki/Opel_Mokka

[no_hypocrisy]

30. B/c of Brexit, the 1% can always continue to buy Jaguars, MG's , Land Rovers, and Rolls-Royces.

[mwooldri]

33. Just as long as they're the British ones...

Jaguars are also made in Austria, India and China. Land Rovers are also made in Slovakia, Brazil and China.

[no_hypocrisy]

37. Point taken.

[mwooldri]

35. If I recall correctly, tariff on imported passenger cars is 2.5%.

Tariff on import of "trucks" is 25%.

This is why Ford ships their Transit Connect vans from Spain to the US as a passenger vehicle. They then retro-fit it to a van here in the USA. It saves them 22.5% on the tariff.