BMW and Daimler stand to lose twice-over in EU-US trade war
German carmakers may be hit by higher costs when they ship cars to the US, but also by any retaliatory action that affect the cars they produce in the US and export to the EU
BMW and Mercedes-Benz maker Daimler face a double whammy of trade risks in an intensifying spat between the European Union and the US. Both carmakers ship significant numbers of vehicles from the EU, and also export from US plants. US President Donald Trump renewed threats to impose tariffs on auto imports, hitting out at the bloc’s standard 10% import tariff on cars — higher than a 2.5% American duty on auto imports — and 25% on sport utility vehicles. With Trump extending tariffs on steel and aluminium imports to include the EU on June 1, and a heated meeting of G7 leaders in Canada over the weekend, Germany said on Monday that retaliatory action on US products could be ready by July 1. As a result, German carmakers have to worry not only about the potential for higher costs when they ship cars to the US, but also any retaliatory measures that affect the cars they produce in North America and send to the EU. The manufacturers are already rethinking the way they produce in the US B...
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