US President Donald Trump’s new tariffs that bring 25 %customs duties to products imported from Canada and Mexico entered into force. Trump’s tax decision is a coup for European automotive giants. It is said that automotive giants may suffer great financial losses. Here are the details…
Volkswagen and Stellantis will take the biggest blow from Trump’s new tax tariffs
According to Bloomberg Intelligence’s analysis, the said customs duties may cause European automobile manufacturers to suffer a total loss of $ 5.88 billion. Among the most affected companies are the following:
- Stellantis: $ 3,44 billion lost
- Volkswagen: 1,77 billion dollars loss
- BMW: 552 million dollars lost
- Mercedes: 123 million dollars lost
Hard output from Volkswagen CEO! We will never produce this car
Volkswagen will never produce scirocco SUV. According to the statement from the CEO, some models should remain as they are.
According to the new tariffs, the prices of cars that are not produced in the USA may increase up to 10 thousand dollars, but now producers are looking for alternative solutions to avoid reflecting this cost to consumers. Is it really possible to shift production to the USA?
According to Bloomberg analysts, European automotive firms may consider transporting their production to the USA. However, this process will take time and give up high costs. Trump can also bring additional taxes targeting the European automobile sector.
For now, we will wait and see how European automotive giants will respond to their new customs duties. So what do you think? Can brands such as Volkswagen and Stellantis overcome this problem by making production in the USA? How will new taxes affect automobile prices for American consumers? You can write your opinions in the comments section below…
