Amidst the intense disagreements due to the tariffs being imposed on the foreign metals, the US has declared to follow the same for the vehicles. In fact, the European carmaker shares have slipped terribly after the US President Donald Trump intensified the threats surrounding the tariffs slapped against the cars. In response to the tariffs being imposed against the foreign lands by the US; Mexico, European Union, China, India, and Canada are about to reciprocate in a similar manner.
In a tweet, Trump has stated that the European cars are going to witness an import tax of 20% if the restrictions along with the tariffs on behalf of the European Union are not eradicated with immediate effect.
The shares prices, belonging to the automobile giants like Volkswagen, Porsche, BMW, and Daimler have encountered a dive of around 1%.
During the previous month, Trump had initiated an investigation through the Commerce Department in order to identify the risks imposed by the car imports to the national security. He tweeted in this regard when the probe was still under the process. The investigation is expected to be over by the end of August.
The present scenario raised a ripple of concern among the US Congress and various groups of the business lobby. Orrin Hatch, the Senator has even stated that he was completely unaware of the fact that the Trump administration was executing an investigation regarding the risks imposed by the vehicle imports to the national security. According to him, this will be affecting the imports which are worth $200 billion. He also speculated that this will lead to job losses and price hike.
In response to the raised concerns of the automobile tariffs, Wilbur Ross, the US Commerce Secretary has affirmed that the decision has not been finalized yet and the process is at an early stage.
Hunter Byce is Shouzy’s senior editor and a nationally syndicated columnist and author. Hunter lives in Baltimore and covers the intersection of money, politics and finance. He appears periodically on national television shows and has been published in (among others) NPR, Politico and The Atlantic. He also has served as a journalist and consultant on documentaries for KTNYC.