by Matt Brown, news editor
President Trump is set to win his trade war in Germany, despite German Chancellor Angela Merkel’s best efforts.
Top German car companies are going behind Merkel’s back to eliminate the 10% import tax on American-made cars following Trump’s threat of an increased tariff.
With 55% of all EU auto exports, Germany would be in major trouble… and it would be all Merkel’s fault.
….We are finishing our study of Tariffs on cars from the E.U. in that they have long taken advantage of the U.S. in the form of Trade Barriers and Tariffs. In the end it will all even out – and it won’t take very long!
— Donald J. Trump (@realDonaldTrump) June 26, 2018
If Trump raises tariffs on European cars by 20% like he threatened, Germany’s economy would take a serious hit, economists say. With no foreseeable way to prevent a loss, exports and investments would drop significantly for German auto firms.
So the car companies are taking matters into their own hands.
Richard Grenell, the U.S. ambassador to Germany, has reportedly met with executives of auto companies, such as BMW, Volkswagen, and Daimer, in an effort to remove car tariffs between the U.S. and the EU.
“It’s potentially very damaging for particularly the German auto sector, and there is no specific policy measure that can offset it,” Erik Nielsen, chief economist at UniCredit, told CNBC.
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This report comes after the EU said they would levy a 25% tax on American goods in retaliation to the tariffs the Trump administration slapped on European steel and aluminum. Merkel has led the charge of the retaliatory taxes… and has failed miserably.
The German car make have expressed they would be willing to forgo the long-standing tariffs, which Trump has decried as “unfair” to Americans, as part of a larger deal focused on various industrial goods.
Trump’s business expertise, it seems, has won another major victory for U.S. workers!
— Matt Brown is a journalist for The Horn News and seeks to expose government corruption wherever it occurs