Wednesday, November 13, 2024

Germany

The general tariff on autos into the US is 2.5% but there has been a 25% tariff on trucks since 1964. The result is that most foreign trucks sold in the US are made in the US. When a car made in the US is sent to Germany the customer pays a 10% import tax (tariff) plus a 19% value added tax (VAT). Trump is suggesting an increase on auto tariffs from 2.5% to 10 % and the Germans are upset. When Trump ends the Ukraine war this opens the door for Germany to once again get natural gas from Russia and that will do far more for their economy than any import tax on cars will hurt. In fact many agree that this will save the German economy which has been in a recession for the past two years.

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