1. Home
  2. Press
  3. IW News
  4. Import tax harms US interests
Show image in lightboxImport tax harms US interests
(© Photo: Lya_Cattel)
Share this article:

or copy the following link:

The link was added to your clipboard!

German car manufacturers in the USA IW News 16. January 2017

Import tax harms US interests

Donald Trump attacked the German car industry and threatened with penalty taxes for car imports. In doing so, he overlooks the fact that German manufacturers have long been an important player in the US itself. They not only build for the US market, but are now among the most important vehicle exporters of the USA.

Share this article:

or copy the following link:

The link was added to your clipboard!

The US market is of great importance to German manufacturers: in the premium segment, they hold a market share of 40 percent. Recently, almost 550,000 vehicles worth over 30 billion euros were exported to the USA. This corresponds to about 10 percent of German production.

Trump is using this demand power to attack the German manufacturers. On the one hand, he asks the German car industry to cancel investment projects in Mexico in favor of factories in the USA. On the other hand, he criticizes the fact that there are too few vehicles from US production in Germany.

Donald Trump is also aware of the fact that his attack hits the US economy itself, because the USA are already an important production location for German manufacturers. Last year, more than 850,000 vehicles from German brands left the production lines in the USA. This is about 7 percent of the total US production and the trend is clearly rising. And: the US production of German manufacturers is sold only about half in the US, the rest is exported worldwide. Especially the premium manufacturers assemble their SUV models in the United States for the world market. The German manufacturers also made a large contribution to US car exports to Germany of about 176,000 vehicles.

Additionally, Trump should remind himself that Chevrolets are sold with the Opel badge in Germany.

Share this article:

or copy the following link:

The link was added to your clipboard!

More on the topic

Read the article
Targets threaten efficiency of EU climate and decarbonization policies
Benjamin Tischler IW News 15. January 2018

Energy consumption: Targets threaten efficiency of EU climate and decarbonization policies

Increasingly stringent energy consumption targets for the year 2030 flanked by national energy efficiency targets are about to being agreed at the EU level. A study by the German Economic Institute (IW) shows that these targets when applied to ETS-sectors, ...

IW

Read the article
Martin Beznoska / Tobias Hentze IW News 6. March 2018

(Un-)Fair taxation of the digital economy

The EU would neglect its responsibility for the mismatch of tax policies among member states by implementing a taxation of the digital economy. It would translate into a tax increase for a specific group of companies, which would make the classification of ...

IW

Content element with id 8880 Content element with id 9713