Trump cautions German automakers with 35 percent U.S. import tariff

by SpeedLux
2018 Volkswagen Atlas images

Shares in German automakers BMW, Daimler and Volkswagen dropped after United States President-elect Donald Trump alerted he will enforce a border tax of 35 percent on automobiles imported from abroad to the U.S. market.

All 3 automakers have invested greatly in factories in Mexico, where production costs are lower than the United States, having a target of exporting smaller vehicles to the United States market.

During an interview with German newspaper Bild, published on Monday, Trump criticized the German automakers for failing to produce more cars on U.S. soil.

“If you want to build cars in the world, then I wish you all the best. You can build cars for the United States, but for every car that comes to the USA, you will pay 35 percent tax,” Trump stated.

“I would tell BMW that if you are building a factory in Mexico and plan to sell cars to the USA, without a 35 percent tax, then you can forget that,” Trump stated, including that automakers will rather have to build plants in the United States.

Mercedes-Benz and BMW already have significant factories in the United States where they develop higher-margin sports utility vehicles (SUVs).

BMW shares dropped 0.85 percent, shares in Daimler lowered 1.54 percent and Volkswagen shares were trading 1.07 percent reduced in early trading in Frankfurt.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.


SpeedLux is a high-authority automotive blog providing the latest automotive news and reviews. SpeedLux covers everything related to cars, bikes, and motorcycles, from news and reviews, to troubleshooting guides, tips and tricks, and more. SpeedLux was born in 2009 and we have over 20,000 articles published on our blog. We thank all our readers, as well as our partners, without whom we could not have reached this level.


©2009 – 2024 SpeedLux – Daily Automotive News and Reviews. All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More