Trump's 25 percent tax cuts Germany's auto sales by half!
US President Donald Trump has announced that he will pay 25 percent tax on cars to be imported from the European Union. If taxes come to life, Germany's automobile exports to the US may be halved.
The IFO, the German economic research institute, announced that the German government's car exports to the United States would be halved in the long term if the Washington administration applied a 25 percent customs duty on cars produced in the European Union.
Gabriel Felbermayr, the foreign trade expert at the Munich Institute, said that if the threat of customs duty is implemented, German automobile exports will decline by 7.7 percent in total.
18 BILLION 400 MILLION EURO
The decline in this ratio means that the revenue from automobile exports is reduced by 18 billion 400 million Euros. Felbermayr stated that increasing exports in other sectors and shifting car sales to other countries may limit the loss of export revenues of Germany to 11 billion 600 million Euros.
Cecilia Malmström, European Commissioner for Trade, said the US hopes it will not fulfill the threat of imposing a European import duty on European cars.
