US President Donald Trump is declaring a trade war across the globe. Aiming, as he says, to strengthen the US automotive industry, he announced that they have been imported to the United States since April 3, and to the car accessories from May 3.
The Trump decision is expected to affect strong economies around the world, including Germany, France, Japan, South Korea, Canada and Mexico.
“We will charge the countries that have been active in business in our country, steal our jobs and wealth, get a lot of things from us over the years. What we will do is impose a 25% duties on all cars that are not manufactured in the US. “
“See the number of car manufacturers to be affected. Foreign and domestic manufacturers are on the same screen because many of the foreigners have car assembly plants in the US even though they use imported accessories. Of the 10.4 million cars manufactured or assembled in the US, 50% are imported accessories and 50% with American, “he said.
Trump’s goal is to rejuvenate America’s industrial base in decline, and to raise costs that will allow him to implement the tax exemption program without creating a budget gap.
Mass decline in large automotive shares
The US president’s announcements caused the world’s largest automakers.
In Germany, Porsche’s share fell by 5.4%, Mercedes by 4.8%and BMW by 3.7%. In Japan, which is the largest investor in the United States, Toyota’s share fell 3.7%, in South Korea, the shares of KIA and Hyundai fell by 3 and 4 points. The three largest car manufacturers in the United States recorded losses on Wall Street.
The President of the Commission has stated that the European Union would protect its financial interests.
“Duties are taxes. They are bad for businesses and worse for consumers in the United States and the European Union. “
The German Vice -Chancellor called on Europe not to indulge in US pressures.
Trump’s duties will increase car prices, industry representatives warn.
“The Americans will turn to their domestic market, supply cars from it, and this will bring loss of profits to the factories. There will even be redundancies from the factories and will increase for the rest of the world buying their cars and cars and spare parts, “said Konstantinos Kyratsos, President of the Hellenic Traders Association of Traders.
Experts are warning of a huge blow to major economies such as South Korea as well as the risk of losing tens of thousands of jobs outside and in the United States.
Greek products that will “fight” for exception
As for Greek exports, the fear is that if the trade “war” continues and the duties expand, it will mainly hurt agricultural exports.
There have been mobilizations for oil and wine in order to be excluded from customs duties to Greece.
What do Brussels answer
In Brussels they claim that they were not taken aback but although there are officials who hope Trump will go back at least at the last minute.
Specifically, Europeans could hurt symbolic American products, which could be done by tariffs on Tesla cars and American whiskey.
Europe, however, could also target US technology giants, such as Facebook and X if it chooses to go to a total duty war.
