WSJ: German Auto Makers Propose Eliminating Tariffs on U.S. Goods WSJ: German Auto Makers Propose Eliminating Tariffs on U.S. Goods – NTK Network

WSJ: German Auto Makers Propose Eliminating Tariffs on U.S. Goods

The president's aggressive trade measures may be winning concessions from Europe, with the German auto industry proposing surrender under the threat of 25-percent tariffs.

By NTK Staff | 06.20.2018 @4:00pm
WSJ: German Auto Makers Propose Eliminating Tariffs on U.S. Goods

President Donald Trump will be pleased with a message from the U.S. Ambassador to Germany, Richard Grenell, when the ambassador reports to the president that some Germans are ready to surrender on the issue of auto tariffs.

According to a report from The Wall Street Journal’s William Boston and Bojan Pancevski, Germany’s largest auto manufacturers will support an elimination of Europe’s 10-percent tariffs on American cars if the president drops his threat of a 25-percent tariff on European cars:

That would mean scrapping the EU’s 10% tax on auto imports from the U.S. and other countries and the 2.5% duty on auto imports in the U.S. As a prerequisite, the Europeans want Mr. Trump’s threat of imposing a 25% border tax on European auto imports off the table.

Over the past few weeks, Mr. Grenell has held closed-door meetings with the chiefs of all major German automotive companies, including bilateral meetings with the CEOs of Daimler AG , BMW AG andVolkswagen AG , which operate plants in the U.S. Overall, Germany’s auto makers and suppliers provide 116,500 jobs in the U.S., according to the Association of German Automotive Manufacturers.

Eliminating foreign tariffs on U.S. goods was a major promise of Trump’s insurgent 2016 campaign, and the president has pursued a more fair trade balance between the United States and its partners.

Trump’s largest target is the U.S. trade deficit with China, threatening multiple rounds of tariffs on the world’s most populous country.

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