Winning: Angela Merkel Backs Down to President Trump’s Demands, Willing to Cut Tariffs

Winning: Angela Merkel Backs Down to President Trump’s Demands, Willing to Cut Tariffs

Ever since President Trump announced that he was going to raise tariffs on countries if they did not renegotiate to make it more reciprocal, the Democrats have been in a state of hysteria saying he was starting a tariff war that would destroy the United States. 

The Democrats do not care that by Trump renegotiating tariffs he could bring billions of dollars back into the United States economy, which would benefit the American people. The only thing they care about is obstructing anything he does, even at the demise of the American people.

Angela Merkel has agreed to lower tariffs which is good news for the American people, but not good for the Democrats leading into the primaries.

Fox Business reports:

Germany’s chancellor said Thursday she’s willing to back lower tariffs on U.S. auto imports as a potential European Union (EU) concession to the Trump administration – just one day after CEOs of Germany’s biggest carmakers reportedly voiced support for eliminating such tariffs entirely.

Angela Merkel said she would be ready to support lowering the tariffs, though the measure couldn’t just apply to the U.S.

“I would be ready to support negotiations on reducing tariffs but we would not be able to do this only with the U.S.,” she said, as reported by Reuters, adding that singling out one country would violate World Trade Organization rules.

On Wednesday, the chief executives of prominent German auto companies – including Daimler, BMW and Volkswagen – “liked” a Trump administration proposal for both sides to reduce those tariffs to zero, according to German business news outlet Handelsblatt. The proposal was said to have been made by U.S. Ambassador to Germany Richard Grenell during a meeting at the U.S. embassy.

The EU tariff rate on all U.S. car imports is 10% while the U.S. tariff on imported European cars is 2.5%.

Auto stocks, including Ford, Fiat and General Motors, rose on the news Thursday.

Ticker Security Last Change %Chg
F FORD MOTOR COMPANY 11.05 +0.06 +0.55%
GM GENERAL MOTORS COMPANY 39.47 +0.50 +1.28%
FCAU FIAT CHRYSLER AUTOMOBILES N.V. 20.03 +1.13 +5.98%

Last week, President Trump threatened to impose a 20% tariff on imports of all vehicles assembled in the EU, though he is reportedly willing to scrap those plans if the EU reduces its levies. The potential tariff would hit Germany particularly hard as cars are one of their key exports: manufacturers in the country exported more than 4.3 millionOpens a New Window. vehicles in 2017.

European Commission President Jean-Claude Juncker is expected to meet with President Trump later this month to discuss trade concerns.

Trump has been vocal about the need for automakers to manufacture vehicles in the United States, and has said there are too many German cars on the roads.

The Commerce Department is currently investigating whether foreign auto imports pose a risk to national security.

Meanwhile, while tensions appear to be easing with the EU, another round of U.S. tariffs on Chinese goods are due to go into effect on Friday. The levies would be placed on $34 billion worth of goods.

In March, President Trump announced that he would impose tariffs on imported steel and aluminum. Speaking with industry officials, Trump said, “We’re going to rebuild our steel industry. We’re going to rebuild our aluminum industry.” He continued, “The U.S. hasn’t been treated fairly. Next week, we’ll be imposing tariffs on steel imports and aluminum imports.”

Right now, the concern is China, who is holding their ground and refusing to negotiate.

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Market Watch reports:

President Donald Trump said Thursday the U.S. could soon impose tariffs on more than $500 billion in Chinese imports, about the amount of total goods the U.S. imported from China last year.

Trump made his comments hours before fresh tariffs on $34 billion of Chinese imports took effect at 12:01 a.m. Eastern Time Friday.

Speaking to reporters on Air Force One on his way to a rally in Montana, Trump gave a running total of what he will seek, assuming China responds with retaliatory tariffs, starting with the $34 billion in levies that kicked in Friday.

“Then you have another 16 [billion] in two weeks and then as you know we have 200 billion in abeyance and then after the 200 billion we have 300 billion in abeyance. OK? So we have 50 plus 200 plus almost 300,” he said, according to reports by Reuters and CNBC, adding “It’s only on China.”

A massive escalation like that would likely rattle financial markets worldwide, and could have costly repercussions for U.S. manufacturers and consumers.

The $34 billion in tariffs are the first part of levies on a total of $50 billion of Chinese goods that Trump announced in June. The second part, with tariffs on $16 billion in Chinese imports, is scheduled to take effect in two weeks.

China has warned it will retaliate in kind. On Friday, there was at first some confusion about whether its countermeasures had been launched immediately after the U.S. move as promised, with conflicting reports coming out of China. But in a briefing Friday, Foreign Ministry Spokesman Lu Kang reportedly confirmed China’s retaliatory tariffs had been implemented, without giving details. A report in state-run news outlet Xinhua indicated they are to the amount of $34 billion and on the range of U.S. goods already outlined.

President Trump will not back down from China’s threats, and he is right not to, he if fighting for the American people and welfare of the United States as a whole. As he has stated repeatedly, all he wants is a fair, and reciprocal tariffs which are long overdue.


 

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