July 6, 2018
In response to Trump tariff threat, Merkel says she would back tariff reduction on US vehicle exports to Europe
By Thomas Lifson
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 U.S. unless the Europeans 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 E.C. 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."
In response to Trump tariff threat, Merkel says she would back tariff reduction on US vehicle exports to Europe
By Thomas Lifson
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 U.S. unless the Europeans 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 E.C. 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 U.S. More winning!
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