In response to Trump tariff threat, Merkel now backs tariff reduction on US vehicle exports

American Thinker ^ | 07/06/2018 | Thomas Lifson

[SeekAndFind]

Much to the shock of liberals, being tough on trade works better for American exports than being nice and hoping other nations will be “fair” to us in return. That works in kindergarten where a teacher is present to enforce the triumph of being nice. But in the real world, where politicians respond to domestic interests, it takes more than flowery rhetoric to get action.

When President Trump threatened to slap heavy tariffs on European auto exports to the US unless they brought their tariffs down to equal our tariffs on them, he was lectured that this was “no way to treat our allies,” and other such piffle. The four-to-one difference in tariffs on our exports to the EC over their exports to us was an ongoing outrage that didn’t bother people who buy BMWs, Audis, and Mercedes products, and who would never consider a Cadillac.

But now that he has the attention of European auto makers:

German Chancellor Angela Merkel said on Thursday she would back lowering European Union tariffs on U.S. car imports, responding to an offer from Washington to abandon threatened levies on European cars in return for concessions.

However, she added EU tariff negotiations required a "common European position and we are still working on it."

I’ll bet they are working on it. Germany accounts for at least half of Europe’s auto exports to the US.

[CMAC51]

If the result is American factories producing those products, we shouldn’t be in any big hurry to lower the tariffs. After all, whats good for the goose is good for the gander.

This is the beauty of having Trump leading our trade efforts. He understands the whole picture. Volkswagen builds and wholesales the car to the US, but in the US there are thousands of jobs related to the import, sales and service of Volkswagen.

Steel is manufactured in China which is important to countless jobs in the Oil and Gas industry.

When Trump sets tariffs, those in the US negatively affected squeal. He understands and will do an excellent job of managing the reins with just the right amount of pressure to achieve the desired overall results. It will be a bouncy ride, but the US will end up on top.

[central_va]

Angela blinked.

[central_va]

Either way more Americans end up working. Keep the tariff and more Lincolns and Caddies will be sold domestically. Lift the tariff, and the EU does like wise, means more exports of cars and even more employment. win - win either way.

[central_va]

everything except what we can’t mine here..... and bananas.

[central_va]

I love the smell of tariffs in the morning

[Harmless Teddy Bear]

In one of the major ironies of Trump he is more in favor of free trade then the current proponents.

You raise yours, we raise ours. You lower yours, we lower ours.

That is the way that it is suppose to go.

[irishjuggler]

Merkel did not draw this out of her feeble mind. It was delivered to her by German industry. THEY don’t want a trade war with Trump and THEY can admit EU tarriffs are too high.

You nailed it.

[aquila48]

Excellent!

[thinden]

It’s almost as if Trump knows how to negotiate for things he wants.

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

the art of the deal?

or just a game of sweat?

either way, it’s another win

[DoughtyOne]

Nothing ventured, nothing gained...

This is how leaders lead. Thank you Mr. President.

[ManHunter]

You mean Germany (and other EU countries) ALREADY had tariffs on US products?! Well who woulda thunk!

Listen to CNN and you’d likely believe that Trump is imposing tariffs just to start trade wars...

[DoodleDawg]

We should just set our tariffs equal to theirs, assuming no other trade barriers against our products. Or set ours equal to the approximate cost of any non-monetary barriers. If their barriers completely block our products, then a hundred percent tariff on their goods.

They're offering to eliminate tariffs on vehicles imported from the U.S. in exchange for the U.S. eliminating tariffs on vehicles imported from Europe. The U.S. has a 25% tariff on light trucks and SUVs. Because of that tariffs pickups and SUVs are the most profitable lines for GM, Ford, and Dodge. So profitable, in fact, that U.S. automakers are cutting back on car lines in favor of light trucks and SUVs. Remove the tariff and the Big Three take a substantial hit to their bottom lines. Will Detroit sit still for that?

[pepsionice]

If you go and examine the European vehicle industry, you will come to three conclusions with the truck/SUV situation:

1. The only two companies with any real truck production are VW and Mercedes (the Mercedes is some ultra high-cost truck, way beyond what most Americans would pay. The VW ‘Caddy’, I think, if there were no tariff existing....might interest a fair number of folks (more of a truck-van, than a real truck).

2. There is a wide-range of SUVs made by Volvo, BMW, Mercedes, Opel, Audi, etc. Presently, with the dollar-exchange rate and the tariff existing....they are all extremely expensive. On quality status? I think they all would be welcomed by the American consumer. The cost factor? It makes the discussion worthless.

3. Finally, we end back with the question of Detroit, and if the big-three can really compete. Back in the 1980....I would have said no. Times have changed to some degree, but I doubt that they’d agree to dump the 25-percent tariff on truck/SUV imports. Trump might have to force them into the corner.

[Grampa Dave]

Maybe the reality of tariffs is happening:

If US tariffs are bad for the US economy, why is no one discussing why country X’s current and retaliatory tariffs are bad for X’s economy?

http://freerepublic.com/focus/news/3669470/posts?page=5#5

Thanks to: kosciusko51 for this anti tariff shredding reality!