The German car industry has criticised the possible classification of European car imports as a threat to the national security of the United States. If the US Department of Commerce came to this evaluation, this would not be understandable, informed the German Association of the automotive industry (VDA). Accordingly, the German car manufacturers have created more than 118,000 jobs in the United States, as well as the dual training system for skilled workers was introduced. “All of that strengthens the U.S. and is not a safety problem,” said the VDA.
The Association reiterated its support for free trade and the removal of customs duties. “Customs barriers do not benefit anyone, including the United States. Rather, they represent a burden for the world trade and international value chains, especially the American automotive industry would be affected,” it said in the message of the VDA.
Up to this Sunday, the US must decide-the Ministry of Commerce, whether the Import of cars and supply the national security of the United States parts affected. This should be according to the Ministry of Commerce of the case, could the US President Donald Trump impose within 90 days of the special duties. Last customs duties of 25 per cent, were discussed. Trump wants to reduce the customs duties on the American trade deficit and Jobs in the United States.
On Saturday, German Chancellor Angela Merkel (CDU) warned at the Munich security conference in front of customs duties. “We are proud of our cars. We must not, of course,” said Merkel. You don’t understand how Americans could consider German cars as a threat to national security. The Chancellor referred to the production sites of the German car maker in the United States and the jobs associated with it. In the U.S. state of South Carolina, for example, the largest BMW plant is located. “Not in Bavaria, in South Carolina,” she said.
auto exports to the U.S.
The value of European car and auto parts exports to the United States was the last of the EU Commission to more than 50 billion Euro per year is estimated to be cut in half. Especially the German companies would damage the special duties. According to the ifo Institute for economic research German car could halve exports to the United States in the long term. “These duties would reduce the total car exports from Germany to 7.7 percent, which would correspond to a value of 18.4 billion euros”, said the ifo expert Gabriel Felbermayr. Trump should make actually Serious, this is likely to reduce, according to ifo, the value added of the German car industry of around five percent, or around seven billion euros. In December, a Delegation from the German car was made Manager of VW, Daimler and BMW, Trump, to him special duties to dissuade.
The EU had already announced that it would respond to new U.S. tariffs with their own duties. It is conceivable, therefore, that in the first step, countervailing duties on US Goods to the value of around 20 billion euros would be imposed. New free trade talks between the EU and the USA have progressed so far in only slowly. In July, between Trump and the President of the EU Commission Jean-Claude Juncker, the agreement provides for arbitration, specifically, that both sides begin discussions on the abolition of customs duties on industrial goods, as well as closer cooperation in the area of regulation, for example, for the pharmaceutical industry.
Trumps duties are also in the United States controversial. Experts warn that higher customs duties, the sales figures in the US brakes and, ultimately, Jobs could be at risk. The U.S. auto parts industry warns that special duties are an additional burden for American companies and consumers. Republican Senator Chuck Grassley, Chairman of the Senate Finance Committee, said that the special duties charged on cars and car parts consumers enormously, bought a car, regardless of whether it was produced in the USA or imported.
The U.S. Ambassador to the EU, Gordon Sondland, defended the possible duties. This is the only way to bring the Europeans in talks on free trade. “The Europeans are only willing to negotiate with us, because the car duties threaten,” said Sondland of the business week. According to him, may work in these topics, only “pressure”.