Trump took office last Friday, and has already signed an order withdrawing the United States from the Trans-Pacific Partnership trade pact and has pledged to re-open the North American Free Trade Agreement (NAFTA) that consists of the United States, Canada and Mexico.
The president strengthened his election theme of increasing U.S. manufacturing tasks on Tuesday when he consulted with the CEOs of General Motors, Ford Motor and Fiat Chrysler Automobiles (FCA).
Matthias Wissmann, head of Germany’s VDA auto industry association alerted on Wednesday the United States would suffer substantial financial damage from imposing trade curbs, after President Donald Trump put restored pressure on U.S. automaker to develop more cars in the U.S.
“It’s beyond all concerns that should restrictions be made to the NAFTA location, they would initially deal a substantial blow to the U.S. economy,” stated Matthias Wissmann, adding worldwide trade would also suffer.
German automakers consisting of Volkswagen and Daimler have boosted the amount of light automobiles built in the United States sevenfold to 850,000 in the last 7 years, with over half destined for export, he stated.
“By setting up tariffs or import taxes, the U.S. would shoot themselves in the foot over the long term,” Wissmann stated.
Trump earlier this month cautioned the United States would enforce a border tax of 35 percent on automobiles that Germany’s BMW plans to develop at a new factory located in Mexico and export to the United States.
