A Vicious Cycle – Berlin Worried about Losing Trump’s Trade War.
The U.S. has followed through with its threat to impose punitive tariffs on European steel and aluminum and the signs are pointing to a global trade war. The German government is doing what it can to prevent harm to its automobile industry.
… The German automotive industry would also be hard hit by a possible trade war with the U.S., where the most cars are sold in the world after China. German carmakers export around a half-million vehicles to the U.S. each year — particularly the kinds of expensive sedans that have been a thorn in Trump’s side for decades. If punitive tariffs are imposed, carmakers would likely have no choice but to react with higher prices and thus risk a decline in sales. VW subsidiary Porsche is especially at risk. Although the company sells almost a quarter of its vehicles in the country, it does not operate any factories of its own in the U.S.
“Germany stands to lose most.”