Published: Sat, June 02, 2018

Trump reportedly wants to push German carmakers out of the U.S.

Trump reportedly wants to push German carmakers out of the U.S.

President Donald Trump thinks there are too many German cars in America. And now the president has Germany in his sights, reports CNBC.

But that report is only a sliver of the pain those carmakers have felt due to the Trump administration's actions.

Germany's auto industry association VDA says its members exported 657,000 vehicles to North America past year, with total exports of vehicle components, cars, engines, as well as second-hand vehicles totalling 31.2 billion euros in 2016. We'll update if we hear back from the others. So devastating were the rumors - which haven't even been verified - that several German vehicle makers saw their stock values plummet.

Aside from playing to his nationalist populist base, it remains an open question as to what Trump's ultimate goal is with the ban as the majority of German auto manufacturers, including Mercedez-Benz, Volkswagen, and BMW - already produce their cars in the United States.

Of all foreign carmakers that sell cars in the US, European manufacturers are set to be hit the most. VW's Chattanooga, Tennessee, plant makes Volkswagen's Passat model. Shares of Volkswagen and Daimler each fell 2%, while BMW slid 1%. But that includes a significantly higher percent of high-line vehicles, as three of the four main German brands focus on luxury segments. Japanese automakers export almost three times as many vehicles to the USA, at about 1.7 million in 2017, compared to 657,000 German cars, trucks and crossovers, according to German auto trade group VDA.

A ban like this would huge ramifications for the USA auto industry. "The imposition of tariffs on the auto industry therefore would severely disrupt those supply chains". The company is also planning an electric vehicle investment there.

"He can do this", Kirkegaard said.

A logo of the German luxury carmaker BMW is seen during the company's annual news conference in Munich, Germany, March 21, 2018.

The president asked Commerce Secretary Wilbur Ross to consider whether the imports of automobiles, including trucks and automotive parts, threaten USA national security.

The type of investigation, known as Section 232, is the same approach the Trump administration used to justify its new steel and aluminum imports. If Trump were able to find a legal loophole to stop Mercedes production in the United States the careers of 34,015 Americans would be at risk.

"There are about 750,000 jobs created by German companies in the USA", Merkel said past year. Porsche was not immediately available for comment.

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