"If the U.S. government decides to raise tariffs on imported cars, we have no choice but to fight back," said Jyrki Katainen, vice chairman of the European Commission. "In fact, we do not want to use tweets to threaten each other in public but try to avoid an escalation of the trade war. †Cody Lusk, president of the American Association of International Automobile Dealers, said that Trump’s tariff threats could undermine consumer confidence and impede the US car market. It is expected that the US auto market will shrink for the second consecutive year after its record sales in 2016. “If there are very high trade barriers between the United States, China, and the European Union, the export plan will fail,†Samuelson said. If you want to sell cars of various models in every country, you must build more factories. All cars will become more expensive, which violates the logic between modern economies. Economic Daily - China Economic Net Comprehensive Foreign Report Recently, a senior official of the European Commission stated that the European Union will counter any measures taken by the United States to raise tariffs on imported cars from the EU. "If the U.S. government decides to raise tariffs on imported cars, we have no choice but to fight back," said Jyrki Katainen, vice chairman of the European Commission. "In fact, we do not want to use tweets to threaten each other in public but try to avoid an escalation of the trade war. †U.S. President Donald Trump said on Friday that after the U.S. government initiated a car import that poses a threat to the national security investigation, if tariff barriers cannot be quickly eliminated, a tariff of 20% will be imposed on all imported cars produced in the EU. After Trump issued a tariff threat, the European Auto Stock Index began to fall that day, while the American automakers Ford and General Motors were not spared. "This will have the most serious negative impact on him during his presidency, including some of his achievements," said Mark Cohen, vice president of the Automotive Group. At present, the United States imposes a 2.5% duty on imports of passenger cars from the European Union and imposes a 25% tariff on imported pickup trucks. The EU imposes a 10% tariff on imported American cars. Trump warned European automakers at the White House Conference on May 11 this year that they plan to impose a 20% or 25% tariff on some imported cars and severely criticize the trade surplus between Germany and the United States. Impede sales The tariff proposal has aroused strong condemnation from US Republican legislators and business groups. The major automakers groups in the United States and abroad have stated that they "convinced that imported cars will not pose a threat to the national security of the United States." The American Chamber of Commerce believes that in the past ten years, the United States has doubled its automobile production and said that "tariff threats will cause a huge blow to the auto industry and even trigger a global trade war." Frank Ursomarso, a BMW, Jaguar and Volvo dealer in Delaware, said that the cost of tariff increases will have to be passed on to consumers, which will affect new car sales. "This is a simple economic rule - the higher the price, the lower the sales," said Usomeso, "If you increase the cost of car imports, it will make the already very difficult profitability worse, I do not think the dealer Can afford more." According to data from the US Department of Commerce, the United States imported about 1.16 million cars from EU countries last year. BMW and Mercedes have produced hundreds of thousands of crossover vehicles in the southern United States. Therefore, imported models that are listed in the United States are very common, such as the BMW 3 Series and 5 Series, as well as the Mercedes-Benz e-Class. "I have a BMW 750 and the new car is priced at about $111,000," said Usomeso. "If you impose a 20% tariff on $111,000, I might not consider buying this vehicle." In addition, Detroit The Big Three's related models may also be affected, including Jeep traitors and the Buick Falls Cabriolet. Cody Lusk, president of the American Association of International Automobile Dealers, said that Trump’s tariff statements may undermine consumer confidence and damage the US auto market. It is expected that the US auto market will shrink for the second consecutive year after it sets sales records in 2016. Impact on employment It is worth mentioning that Trump’s tariff threats may affect the employment situation of U.S. residents. Hakan Samuelson, CEO of Volvo Cars, warned the United States that trade disputes may undermine Volvo’s plan to create another 4,000 jobs in a new US factory. Samuelson said at the ceremony to celebrate the opening of the new factory: "If the United States increases trade barriers, we will not be able to create more jobs. It is reported that German car manufacturers, including the Volkswagen Group, Daimler and BMW, manufacture cars in factories in the United States. Among them, BMW is one of the largest employers in South Carolina, where BMW has more than 9,000 workers. The Volvo plant is the newest member of the state's large-scale manufacturing plant. Volvo and its new plant in the United States show that US President Trump proposed to impose tariffs of up to 25% on imported cars and auto parts to encourage more U.S. manufacturing and force trading partners to lower tariffs on U.S. products. This led to various conflicts. "If there are very high trade barriers between the United States, China, and the European Union, our export plans will fail," Samuelson said. If every country has sales of various models of cars, it must build more factories. All cars will become more expensive, which violates the logic between modern economies.
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