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Trump Set to Squeeze German Posh Cars Out of US

02 June 2018
Trump Set to Squeeze German Posh Cars Out of US

Trump told that French President Emmanuel Macron last month, CNBC said with a reference to German magazine Wirtschafts Woche.

According to the newspaper, referring to a number of European and American diplomats, but not revealing their names, the tramp in April, said the President of France Emmanuel Makron to that he intends to pursue this policy as long as on Fifth Avenue in NY will not be able to see any Mercedes-Benz.

Daimler declined to comment on the proposed ban, but a spokesperson pointed out that the company supports more than 150,000 jobs here, and 22.8 percent of Daimler's shareholders are from the US.

A similar national security argument was presented when the president imposed steep tariffs on aluminum and steel imports from China, Russia, Germany and some other countries in March.

Overall, the price tag from a new, 25% tariff could come to 4.5 billion Euros for German luxury vehicle manufacturers alone - assuming sales of imported models won't collapse - according to a new report by Evercore ISI. Shares of Daimler (DAI-DE), Porsche (PAH3-DE) and Volkswagen (VOW3-DE) were all trading off around 1 percent on the news. In fact, BMW's sprawling complex in Spartanburg, South Carolina, is the single-largest source of American-made auto exports, 237,000 of the vehicles built there previous year going to markets around the world. Previously, he promised to put an end to the "very bad" German cars.

President Trump would maintain his trade policy to stop Mercedes-Benz models in the US.

Trump's administration recently opened a trade investigation into whether or not vehicle imports from the European Union (E.U.) have negatively impacted America's auto industry.

The phone call between the French president and his United States counterpart came after the USA announced the steep metals tariffs would be imposed on the European Union, Canada and Mexico as of midnight (0400 GMT Friday). More than 70 percent of the plant's SUVs are exported to 135 countries, making it the second-largest automotive exporter in the US, according to the company.

BMW sold 73,835 cars and light trucks in the United States in the first quarter.

German carmakers voiced dismay at the "incomprehensible" US steel tariffs that took effect Friday, adding to a chorus of criticism from global trade partners over the protectionist move by US President Donald Trump.

While the imposing of the tariffs is perceived in the United States as a mean of "negotiating" with other counties, those targeted see them as a threat and effectively a declaration of trade war.

A ban like this would huge ramifications for the U.S. auto industry. The report didn't give any further details on what policies would be used to effectively ban the premium carmakers.