In response to Europe's poultry trade barriers, Lyndon B Johnson imposed a 25% tariff on light trucks. That "chicken tax" is still in place 60 years later. The rules have contributed to the Ford F-Series pick-up truck's unbroken 42-year run as the US's bestselling vehicle, and have locked European manufacturers out of a hugely profitable market for two generations. The chicken tax could also serve as a model for Donald Trump's second White House term.
The US president-elect's promise to impose baseline tariffs of 10% on all goods imports has sent shivers around the world's manufacturers. Few industries are more exposed than Germany's carmakers: the share prices of Volkswagen, BMW, Mercedes-Benz and Porsche have dropped by between 4% and 7% since it became clear that Trump would win.
If a 10% tariff were passed on to American buyers, Audi's US bestseller, the Q5 SUV, would cost an extra $4,500 on top of its $45,400 starting price.
But just when German industry needs a strong advocate, its government has this week collapsed, casting doubt over who will lead Europe's largest economy as the EU prepares for trade talks with Trump.
Trump recently told Bloomberg: "To me the most beautiful word in the dictionary is 'tariff'."
And he has been categorical about his intentions to slap tariffs on EU imports. "They don't take our cars, they don't take our farm products, don't take anything," Trump said during his campaign.
Diese Geschichte stammt aus der November 09, 2024-Ausgabe von The Guardian.
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Diese Geschichte stammt aus der November 09, 2024-Ausgabe von The Guardian.
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