As the ancients of the place would say, the "World automobile sector is in awe" because of the weaves that the president of the United States is behind. Donald Trump, and his America First! is making the business relationships that for years had been forged between the American power and the rest of the world's trade unions, are dangerously faltering.
The imposition of duty by the United States to steel y aluminum that buy the European Union, China and India put these powers on a war footing. For this reason, they decided to fight back by imposing higher rates on strategic products that leave the American country. After that, signatures of the automotive sector , the Volvo o Daimler AG announced that this situation would have catastrophic consequences, as it would damage the automobile sector worldwide.
They were joined by the mythical firm Harley-Davidson announcing that it would take part of its American production to a third country that does not have problems with tariffs and trade wars. However, after various tensions and strategic moves of dubious honesty (by the United States), it seems that we are about to reach a agreement to avoid a trade crisis worldwide.
Apparently, the American executive would have offered a kind of deal for german manufacturers settled in the country (which is practically all of them). After this "outstretched hand", it would have been the Bavarian Chancellor Angela Merkel who would have taken another step further, proposing to present a initiative in the European Parliament to reduce tariffs on American vehicles arriving in Europe.
For this initiative to come to light, the community partners will have to fight hard, because according to the World Trade Organization, if tariffs are reduced for one country, those applied to other partners must be studied. Therefore, and taking into account that there are many and varied business interests of the members of the European Union, this good deed by Germany could come to nothing.
We will have to see how the situation evolves, but for now China it is already tightening its tariffs on airplanes and agricultural products. For its part, United States is doing the same with technology-related products. We will have to see how far they go, because the thing "ant-colored dick".
Source – Automotive News