In recent news, German automakers say they are willing to abandon car tariffs between the European Union and the United State in exchange for President Trump dropping a 25 percent border tax threat on European automotive imports, according to The Wall Street Journal.
The U.S. ambassador to Germany, Richard Grenell, was expected to meet with Trump’s administration on Wednesday, June 20th to discuss the matter. The Wall Street Journal reports that German automakers support the European Unions 10 percent tax on auto imports from the U.S. and a 2.5 percent duty on auto imports gong away if Trump stops the threat of imposing a 25 percent border tax on auto imports coming from Europe.
Grenell has reportedly met with executives from German automakers including Daimler, BMW and Volkswagen. The three companies have plants in the United States and employ thousands of U.S. workers.
The Europeans also want to get rid of a a 25 percent tax on imports of pickups, crossovers, SUVs and big vans, according to the report.
Daimler confirmed to The Wall Street Journal that they held a meeting with Grenell. Volkswagen did not confirm, while BMW stated that they support “free trade with minimal or no barriers.”
During the presidential campaign, Donald Trump stated that he supports the making of of U.S.-made vehicles and U.S. auto jobs.
The 25 percent U.S. tariffs on imported steel and 10 percent tariffs on imported aluminum recently went into effect, also impacting the EU, Mexico, and Canada.
The European Union has decided to begin charging import duties of 25 percent on a range of U.S. products on Friday, June 22nd in response to the U.S. tariffs imposed on EU steel and aluminum. The decision confirms that this is a dispute that could potentially escalate into a trade war, more specifically if Trump carries out his threats to penalize European Automakers.
The commission formally adopted the law by putting in place the duties on 2.8 billion euros ($3.2 billion) worth of U.S. goods, including steel and aluminum products, farm produce such as sweetcorn and peanuts, bourbon, jeans and motor-bikes.