Trump vows to block German luxury marques from the US

EnlargeChris Kleponis  Pool via Bloomberg

EnlargeChris Kleponis Pool via Bloomberg

The trade policy includes pushing taxes as much as 25 percent on auto imports impacting German automakers, something some worry could cause a domino effect.

Daimler declined to comment on the proposed ban, but a spokesperson pointed out that the company supports more than 150,000 jobs here, and 22.8 percent of Daimler's shareholders are from the US.

This news follows news last week that Trump had already asked Commerce Secretary Wilbur Ross to launch an investigation into the national secret threat posed by imported cars, trucks, and auto parts, as well as wanting to add 25 percent tariffs on imported vehicles. European Union countries had been exempted from the Trump administration tariffs on aluminum and steel imports, but those exemptions are expiring, and the administration announced this week that those exemptions are coming to an end and will not be renewed.

Together, the VW, Porsche, Daimler and BMW plants directly employ almost 50,000 people in the United States.

Volkswagen's luxury brands include Audi, Bentley, Bugatti, Lamborghini and Porsche.

The decision on tariffs made by the US President Donald Trump closed doors to the talks with Washington on other issues, Macron said as cited by Reuters.

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So Why Does Trump Want To Push Out German Cars?

The phone call between the French president and his U.S. counterpart came after the United States announced the steep metals tariffs would be imposed on the European Union, Canada and Mexico as of midnight (0400 GMT Friday). Combined with other German products imported into the USA, that amounts to a trade deficit of 23.8 billion euros (about $27.8 billion).

A large tariff on German luxury vehicle imports could reorder the ranking of sales in the United States.

The German auto industry association VDA called the USA tariffs "incomprehensible". The report didn't give any further details on what policies would be used to effectively ban the premium carmakers.

Both BMW and Mercedes-Benz have factories in the USA, although high-end and specialty models, such as the Mercedes-Benz S-Class that irks the President, are imported.

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