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.
Denne historien er fra November 09, 2024-utgaven av The Guardian.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Denne historien er fra November 09, 2024-utgaven av The Guardian.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Money hacks How to use your Christmas gift vouchers wisely
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New start Is 2025 the right time to become your own boss?
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It has been both astonishing and appalling in equal measure,\" says Jonathan Hattersley, 66, from Cambridgeshire.
Biden Blocks Japanese Firm's $15bn Bid for US Steel Over Security Fears
Joe Biden blocked a $14.9bn (£12bn) bid by Japan's Nippon Steel for US Steel yesterday, citing concerns the deal could hurt national security and following through on a pledge to keep the company domestically owned as he prepares to depart the White House.
We're like snipers' Lethal and cheap, drones dominate the frontline now
Denys, a soldier with Ukraine's Khyzhak brigade, describes a new kind of war. Standing in a barracks workshop with piles of basic Ukrainian first-person view (FPV) drones behind him, he says: \"There are fewer gunfights because there are more drone fights.\" Frontlines that were once a gunshot apart are now a killing zone several miles deep as Russian and Ukrainian drone squads hidden behind the frontlines target each other's forces with aerial attacks. \"Back in 2022, we were still running around with machine guns from the tree lines,\" Denys says, almost with nostalgia.
Profits at GB News owner's hedge fund plunge 64%
Profits at the hedge fund co-founded by the GB News and Spectator owner Sir Paul Marshall plunged by almost two-thirds last year, resulting in significantly reduced payouts for its partners.
Call to stick to tougher green targets amid record EV sales
Carmakers sold a record number of electric cars in the UK last year, prompting environmental groups to urge the government to stick to tougher green targets even as the industry argues they are unsustainable.
Handbags and watches help take Thailand PM's declared worth to £322m
Thailand's prime minister, Paetongtarn Shinawatra, has declared £322m in assets, including a collection of 217 designer handbags and 75 luxury watches in submissions on her wealth to a government body.
