President Trump has been implementing tariffs on products from countries who maintain a trade imbalance with the United States. One of those countries is Germany, which has one of the most powerful economies in the world. And while President Trump has been criticized for his tariff policy, there are signs that it is working. German Chancellor Angela Merkel recently indicated that she is willing to lower tariffs on U.S. auto imports as a huge concession to the Trump Administration.
“I would be ready to support negotiations on reducing tariffs but we would not be able to do this only with the U.S.,” Merkel said.
This comes after pressure from prominent German auto companies. Fox Business has the story:
“On Wednesday, the chief executives of prominent German auto companies – including Daimler, BMW and Volkswagen – ‘liked’ a Trump administration proposal for both sides to reduce those tariffs to zero, according to German business news outlet Handelsblatt. The proposal was said to have been made by U.S. Ambassador to Germany Richard Grenell during a meeting at the U.S. embassy.
“The EU tariff rate on all U.S. car imports is 10% while the U.S. tariff on imported European cars is 2.5%.
“Last week, President Trump threatened to impose a 20% tariff on imports of all vehicles assembled in the EU, though he is reportedly willing to scrap those plans if the EU reduces its levies. The potential tariff would hit Germany particularly hard as cars are one of their key exports: manufacturers in the country exported more than 4.3 million Opens a New Window. vehicles in 2017.”
The EU has shown signs that they are willing to make adjustments to meet President Trump’s demands. And that is a big win for the president.