The Auto Association in Germany has called for emergency negotiations between the EU and the US for duties
| The shares of « Volkswagen » They fell by 5.1%, the company being the most affected among German car manufacturers because of its large supply base in Mexico and the lack of production in the United States for the Audi and Porsche brands. |
The shares of other car companies, including Mercedes-Benz, BMW and Daimler Trek, lowered their value by about 3.5%, and the supplier of automotive components « continent » reported a drop of 2.9%.
The EU must give a definite response to the duties, let it be clear that we will not retreat to the United States.
Robert HabekMinister of Economy of Germany
The German Automobile Association VDA has identified the new levies as a « fatal signal » for free trade based on rules. The association warned that duties would affect companies poorly as well as global supply chains.
Trump has announced duties on all cars that are not manufactured in the US
| « The German automotive industry is pushing for immediate negotiations between the US and the EU for a bilateral agreement, » said VDA President Hildegard Müller. |
To what extent will the German economy be affected
A study by the IFW Institute in Germany shows that it will not be the most affected economy of US duties, FAZ reports.
The Institute predicts that the country’s GDP in real terms will decrease by 0.18% in the first year after the introduction of duties compared to a drop of 1.81% for Mexico and 0.6% for Canada.
« Export losses are limited as cars are often manufactured near the market they are sold, » IFW commercial economist Julian Hinz told FAZ.
