From China to the European Union, Donald Trump he has no intention of sparing anyone.
After tariffs on steel and aluminum come into effect e the "revenge" of the Old Continent with the price increases on jeans, motorbikes, etc., the US president is once again threatening the Old Continent and does so using his favorite means of communication: Twitter.
Through the popular social network, the White House tenant accused the EU of having taken advantage at the expense of the US with its duties and trade barriers: “We are finishing our study on car tariffs from the EU – wrote Trump – Eventually the accounts will come back, and it won't be long ”.
….We are finishing our study of Tariffs on cars from the EU in that they have long taken advantage of the US in the form of Trade Barriers and Tariffs. In the end it will all even out – and it won't take very long!
- Donald J. Trump (@ realDonaldTrump) 26 June 2018
The study referred to by the president was commissioned in May to the Department of Commerce in order to verify whether the auto sector was at risk for "national security". Although there is still no official announcement, it now seems certain that a new turn of the screw will soon be triggered which this time will involve one of the key sectors of the European economy.
According to rumors, tariffs on imports of cars built in Europe could rise from the current 2,5% at 20 or even 25%. The EU tax on cars manufactured in the USA and exported to the Old Continent is instead equal to 10%.
In case you had to move from words to deeds, the most affected nation would be Germany. From BMW to Mercedes, German manufacturers export 1.200.000 vehicles to the USA every year, an enormous figure that weighs heavily on their budgets. Not surprisingly, after Trump's tweet, the shares of the main manufacturers suffered a repercussion: Daimler -0,32%, BMW -0,6%, Volkswagen -0,2%. According to an analysis by Evercore ISI, the three German giants could face the imposition of duties at a high price: 4,5 billion dollars.
On the other hand, FCA (+3%) is clearly positive, which would instead be among the companies least affected by the trade war on motor vehicles.
This morning the EU commissioner for trade also expressed her opinion on the subject, Cecilia Malmstroem which clarified: "There has been no dialogue with the US since they imposed tariffs" on steel and aluminum, and "for the moment no discussion is foreseen".
With reference to cars, the commissioner said: "We don't know when the US investigation into the auto sector will end, probably in the autumn, hearings were held last week, and there are major criticisms even within the US, so we'll see what happens ”. In any case, "for the moment we have nothing ready like an already prepared list" of possible EU countermeasures, because "it is too premature". The EU, the commissioner recalled, had proposed that the US discuss precisely this in order to reach a mini-agreement on certain customs tariffs if it were guaranteed complete and permanent exemption from duties on European steel and aluminium.
It is no coincidence that Sergio Marchionne, CEO of FCA, has taken a very cautious stance on the question: "We must be very careful and not exaggerate in the answer - he commented - because, in Europe, Italy and France have a flow of cars towards USA very different from Germany and FCA produces almost 3 million cars in North America”.
“Tariffs are not the end of the world. They are a problem to manage – added the manager – and everything is manageable. I understand Trump's position politically." "I think it is necessary to correct some anomalies in international trade - concluded Marchionne - and we will arrive at a basis on which to restore a balance that will be a different balance from the current one".
It should be emphasized that, through his chirps, Donald Trump also took it out on Harley Davidson which yesterday announced its intention to move part of its production out of the US in order to stem the effects of the increase in European tariffs: "Harley Davidson You must know that they will not be able to resell their motorcycles in the USA without paying a hefty tax!”.
A Harley-Davidson should never be built in another country-never! Their employees and customers are already very angry at them. If they move, watch, it will be the beginning of the end - they surrender, they quit! The Aura will be gone and they will be taxed like never before!
- Donald J. Trump (@ realDonaldTrump) 26 June 2018
Text updated at 17:59 on Tuesday 26 June
