Trump threatens tariffs: VW and Audi in great danger!

Trump threatens tariffs: VW and Audi in great danger!

In a worrying step, Donald Trump recently introduced new import duties from 25 percent to automobiles that are imported from Mexico and Canada to the USA. According to auto expert Ferdinand Dudenhöffer, Volkswagen (VW) and Audi, who have no work in the USA, will significantly damage this. "VW and especially Audi will lose bleeding and buyers," warned Dudenhöffer, adding that important investments in the US market may be necessary, which meant that the company had to make savings elsewhere. The work in Puebla, Mexico, the second largest work of the group, is expected to be "far less busy", such as 2400

Trump also indicated that foreign automobile manufacturers who increase their production in the USA would benefit from the lowest taxes and energy costs. At the same time, he threatened “substantial tariffs” on vehicles that are not manufactured in the United States. "It is difficult to say what Trump's rulership and what is actually his policy," said analyst John Mcelroy. Nevertheless, German automobile manufacturers such as BMW and Mercedes, which produce in the USA and Mexico, are concerned about the new conditions, since they may suffer a larger shock in the supply chain than many other companies. Jacob Kirkegaard from the Brussels Think Tank Bruegel noted that the extensive future investments of the German automotive manufacturers in the United States cannot protect them from the difficulties that could arise from the new trade barriers, such as dw reported.

economic challenges in the automotive industry

The new customs policy is an enormous challenge for German manufacturers who have invested considerable sums in US production in recent years. For example, VW invests billions in a battery plant in Canada and is planning a new work for the Scout brand in the USA. Despite an increase in sales in the USA, VW has a market share of only about four percent. Trump's threat of withdrawing the subsidies for electric vehicles could also hit the German auto industry hard, as it has invested a lot in the production of electric vehicles, which could put pressure on the entire industry.