AUTONEWS

Trump asks for “zero” rate and is met

Will it be the end of the trade dispute with the United States of America? After Trump expressed his displeasure last year over what he considers to be a huge deficit in the US-Europe trade relationship with regard to vehicle import tariffs, the European Union sat at the table of negotiations.
Automobiles made in the USA traded on the Old Continent are subject to a 10% import tax, while in the opposite situation the US only charges 2.5%. The situation is changing in the case of large SUVs and pick-ups where European exports pay 25% against the same 10% of American exports - hence the option of Mercedes and BMW, for example, to have factories in the USA in the US. type of vehicles.
In the face of this imbalance, US President Donald Trump threatened in May to raise the tax by 20 to 25% to pressure Europeans to level customs duties, and his final decision on this matter should be taken by November. But in the meantime, the "threat" seems to have had an effect on Germany's sides, as German Economy Minister Peter Altmaier is now proposing a solution to ending the dispute: a "zero" rate for US-imported cars.
Should this proposal be reiterated by the European Union, some manufacturers benefit more than others. Across the Atlantic, it is clear that Tesla would benefit most from this fiscal tassel, as it is the fastest growing US brand in European markets, even surpassing industry giants. long established, as is the case with Ford, which for the most part has factories in different European countries. By doing a quick calculation, we would have Tesla Model 3 lowering between € 4,000 and € 6,000, depending on the versions, so that the Model S and X are also more affordable at around € 10,000.
On this side of the Atlantic, German manufacturers would be the most favored, since especially BMW, Mercedes and Audi would have much to lose if Trump pushed ahead with the so-called import tariffs.