The federal government has responded alarmedly to announcement by US President Donald Trump to introduce import duties for cars from EU. Import duties and protectionism were “an aberration”, said government spokesman Steffen Sally. The federal government does not want any escalation in dispute with United States about import tariffs, “and certainly we are not going to do anything like a trade war.”
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The Government will consult with its partners, with European Commission and with France, and look closely at wher and how announcements of trumps will be translated into actual trade policy, said Sally furr. EU Member States had put competence in hands of EU Commission in terms of trade policy, so European vote is now ” most important thing”.
A common dismantling of trade barriers is “right way,” said Sally. The federal government is also continuing to work for free markets. A trade war “is not in German, is not in European, is also not in American interest,” he said. “This is something that would make workers, businesses, consumers on both sides of Atlantic sensitive.”
No exceptions
Trump had announced high import duties on steel and aluminium on Thursday. The EU n threatened with countermeasures, whereupon Trump was still remembered and threatened with import duties on cars from EU. German car manufacturers would be particularly affected by this. US government members said on Sunday that re would be no exceptions.
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The Association of Automotive Industry (VDA) also warned against a trade war. “We are observing current development with great concern,” said VDA president Bernhard Matte on Monday. Import duties could not be a solution, in a trade war re were “only losers – on all sides”.
Matt pointed out that German carmakers in United States also made a “significant contribution” to country’s automobile trade balance, as y also produced in USA: ir share of US export of cars is thus about one quarter three times as high as US market share of German carmakers. Production in USA has been “strategically” expanded for years, at same time import of cars from Germany is declining.
According to VDA, German autobuilders 2017 exported around 494,000 cars to USA. Production at US sites thus amounted to 804,000 vehicles. The current trade has advantages for both sides, stated VDA. These should be “not easily put to game”.
