President Trump wants the Americans to buy fewer European cars and Europeans to buy more American cars. In order to speed up his pipe dream, he said on Sunday evening that new tariffs on EU companies would definitely happen. (Those on Mexico and Canada were remained for the time being.) His threat from 25 percent tariffs in other things could trigger an automotive war war.
The market reaction to this was predictable: Europeans Car manufacturer shares fell yesterday. Stellantis and Volkswagen decreased by 6.8 and 5.6 percent. Volvo fell 6.5 percent, while Mercedes Benz, BMW and Porsche lost between 3.6 and 4.3 percent.
Despite his Bavarian descentTrump has a special beef with German cars. In A 2018 report From the German magazine Economic weekTrump told French President Emmanuel Macron that he no longer rolled Mercedes in New York’s Fifth Avenue. And according to several unnamed European and US diplomats, Trump also asked Macron why the Germans buy so few Chevrolets, but American drivers choose BMWS.
The accuracy of this conversation was confirmed in November last year when former German Chancellor Angela Merkel Italian News Outlet told Corriere della sera This Trump was “obsessed with the idea that there were too many German cars in New York.” Trumps would have been among them like that European cars that the President owned A Mercedes-Benz Slr McLaren, Lamborghini Diablo and Rolls-Royce Silver Cloud apparently belongs to a Mercedes-Benz.
It is a strange obsession because a Mercedes-Benz, which is discovered by Trump, who rolls the Fifth Avenue, will probably be Made in Alabama. In the United States, too, Mammut BMW and Volkswagen factories are available and build large cars that are tailored to us.
Trump has asked for overseas to be manufactured in the United States in the United States that millions of cars from European brands – especially German, have been produced in America since the 1990s.
Volkswagen said last year that it invests 10 billion US dollars in the United States, divided between its chattanooga work and a Joint venture with EV manufacturer Rivian. South Carolina has the largest BMW assembly plant in the world – it did 396,000 automobiles there last year – and was so successful for over 30 years that the global CEO of BMW, Oliver Zipse, recently received one Economic award from the Republican governor of the state.
Porsche and Daimler also do in the USA. German car manufacturers in Alabama, South Carolina, Texas and other Trump voting countries employ around 50,000 American employees, with more employee suppliers and dealers and service centers.
“To make a difference between an American car and a German car is nonsense”, ” Jacob KirkegaardA European trading expert of the Peterson Institute for International Economics in Washington, DC based on Peterson, says Wired.
There is also an increased international co-mung of car brands. Chrysler, historically one of the “Big Three” US car manufacturers alongside GM and Ford, was bought by Fiat from Italy and has been part of the Amsterdam main seat since 2021 Stellantis groupwhich the supposedly all-American brands Dodge, Jeep and Ram Trucks belong.
