German Auto Industry Upset Over Trump's Greenland Tariffs
U.S. President Donald Trump is inexplicably set on making Greenland, a semi-autonomous territory of Denmark, into part of the United States of America.
He's so dead set on it that he's threatening tariffs against European countries that are pushing back on his weird expansionist fixation. Tariffs that could cost the European auto industry -- and American buyers of European-built cars.
The president of the German auto lobby is particularly unhappy. From The Guardian:
“The costs of these additional tariffs would be enormous for German and European industry, especially in these already challenging times,” said Hildegard Müller, the president of the VDA trade organisation.
“What is crucial now is a smart, strategic response from Brussels that is coordinated with the countries affected,” she added.
This follows a threat from Trump to slap certain countries that have opposed his attempt to turn Greenland American with a 10 percent tariff in February followed by a 25 percent tariff in June. Currently, there is a 15 percent tariff on European auto exports.
The European Union might push back, according to The Guardian:
European leaders are expected to meet in Brussels on Thursday for an emergency summit to discuss the prospect of imposing counter-tariffs on US exports on 7 February that would hit everything from liquid gas to aircraft and machinery.
Trump has said he wants Greenland to become part of America for reasons of national security, but reporting over the weekend suggests Trump really wants the territory because he is upset over not winning the Nobel Peace Prize. Geopolitical experts have pointed out that the U.S. doesn't really need to takeover Greenland and make it a part of America in order to maintain national security -- America already has a military presence in Greenland. Not only that, but if Trump attempts to use force to annex Greenland, it could lead to the collapse of NATO. It should go without saying that if that should come to pass, it could lead to all kinds of global problems -- and that likely wouldn't be good for carmakers or carbuyers.
As it is, additional tariffs on European cars could drive up prices of BMWs, Mercedes-Benzes, and more -- though we have to note that German automakers do build a fair amount of cars Stateside, as well as some in Mexico.
Trump's tariffs have already played a part in the death of a crossover built in Italy and sold by an American brand that is part of a global company with headquarters in the Netherlands.
[Image: Lightspring/Shutterstock.com]
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Tim Healey grew up around the auto-parts business and has always had a love for cars — his parents joke his first word was “‘Vette”. Despite this, he wanted to pursue a career in sports writing but he ended up falling semi-accidentally into the automotive-journalism industry, first at Consumer Guide Automotive and later at Web2Carz.com. He also worked as an industry analyst at Mintel Group and freelanced for About.com, CarFax, Vehix.com, High Gear Media, Torque News, FutureCar.com, Cars.com, among others, and of course Vertical Scope sites such as AutoGuide.com, Off-Road.com, and HybridCars.com. He’s an urbanite and as such, doesn’t need a daily driver, but if he had one, it would be compact, sporty, and have a manual transmission.
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If Trump doesn’t stop, Germany is going to cut their foreign aid to US….
"Greenland is for Greenlanders!" -- applause and cheering.
"Well, then, Europe is for Europeans!" -- "you're under arrest!"