And this is the other side of the Trump equation. This would be truly unwise. The highways of the USA need more fine German cars. Not fewer.
Restricting trade raises prices for everyone. It makes us worse off. One can only assume, that like with China Trump and company are sparring to get better deals. But the president shouldn’t be this involved in matters of trade.
Also many BMWs and Mercedes are built in the United States. Trump needs to think about this one a bit more. Not all of us want to drive around in Lincoln Town Cars or F-150s.
This is ugly crony capitalism.
Citing several unnamed U.S. and European diplomats, the weekly business magazine reported that Trump told French President Emmanuel Macron last month he would maintain his trade policy with the aim of stopping Mercedes-Benz models from driving down Fifth Avenue in New York. The report didn’t give any further details on what policies would be used to effectively ban the premium carmakers.
The report comes less than two weeks after the U.S. Department of Commerce launched an investigation into automobile imports to determine whether they “threaten to impair the national security” of the U.S. That could lead to tariffs of up to 25 percent on the same “national security” grounds used to impose metal imports charges in March.