Will President Trump Block German Car Sales?

BMW, Mercedes-Benz, and Audi are symbols of success and prestige.

Owning one is a goal more people are realizing, as BMW sold more than 2.3 million cars last year. Mercedes-Benz was just behind at about 2.2 million, while Audi unloaded some 1.8 million vehicles.

BMW builds its SUVs right here in the States, and Mercedes-Benz has a manufacturing plant in Alabama. Needless to say, German automakers contribute a fair share to the American economy, and well-off car buyers are taking home their wares in record numbers.

Yet the U.S. president is not happy and has vowed to block the “very bad” Germans from exporting cars to our country.

Never mind the fact that the president owns at least one Rolls-Royce (a company owned by BMW) and a Mercedes-Benz SLR McLaren.

Regardless of his personal car choices, the president vowed to block German car exports to the U.S. during a meeting with EU leaders late last month, as reported by Der Spiegel, a German magazine.

CNBC posted a story that said,

“The Germans are bad, very bad,” Trump said, according to participants in the room who spoke to Der Spiegel.

“See the millions of cars they sell in the U.S., terrible. We will stop this.”

Don’t forget, prior to his inauguration, the president spoke to Bild, a German newspaper, and said,

If you want to build cars in the world, then I wish you all the best. You can build cars for the United States, but for every car that comes to the USA, you will pay 35 percent tax.

The White House has since backpedaled on the most recent remarks and attributed them to the president’s frustrations with Germany’s trade surplus, saying it has hurt the American economy.

For the full irony of this situation, check out the list of the president’s cars, which, to be fair, does include a couple of American brands.

Do the president’s remarks make you less likely to buy a German car, or will you go grab one ASAP?

-tgriffith

Find Certified Pre-Owned Cars and Used Cars in your area at CarGurus.

1 Comment

  1. It’s not secret Germany has a 20%VAT. When a German car is sold in the United States no VAT or corporate taxes are collected on that vehicle if it’s built in Germany or offshore. A BMC 3 Series, Mercedes C-Class or Audi built and sold in Germany where it’s manufactured is 30-40% more expensive than when it’s sold in the United States, on the flip side, all U.S. manufacturers MUST pay the German VAT. Is it not fair to demand that our cars be sold in Germany without paying the VAT? Maybe we should add our 35% corporate tax to vehicles build offshore and sold in the United States. President Trump is asking for fair trade practices, right now, it’s not very fair now, is it?

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