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Chancellor Friedrich Merz is “delusional” in his expectation that the Germany’s car industry will be saved from US tariffs, according to Trump administration officials.
Gipugos ni Merz ang Commission sa Europa, nga nagdumala sa palisiya sa pamatigayon alang sa 27 nga mga miyembro sa EU, aron magpirma sa usa ka “framework” nga nag-atubang sa usa ka “framework” nga nag-atubang sa usa ka “framework” nga nag-atubang sa usa ka “framework” nga nag-atubang sa usa ka “framework” nga nag-atubang sa usa ka “framework” nga nag-atubang sa usa ka “Framework” faced by Washington facing a US-UK month that includes a special dispensation for cars.
But Brussels privately told Berlin that such arrangement could not be, as reduced to the German imports Donald Trumps, two people shortened to discussions during the monetary times.
Early this week the Commission was criticized for the lead “more complex” negotiations and said that an automation agreement, including steusicive, which Trump had threatened the sectoral tariff.
But commission officials say this is the hardest removal because Trump wants to reshore these US industries and reduce imports.
The EU negotiations believe that cars are “the most difficult element” of any White House agreement and should be handled after quick aspects approved by the first construction of trust, people said.
Berlin “is fraudulent” to believe that Trump agrees with concessions for the German autteraker as a first step, one of the officials said.
The attachment between the EU Executive and the largest bloc economy precedes a summit of Brussels leaders last Thursday, where they are scheduled to discuss Trade Trade Relationships. Commission officials hope the leaders will return to a “reliable threat” of revenge to get the deal made by the July Deadline.
“I supported the Commission that quickly went to a Trade Deal in the US,” Merz said when he arrived at the summit.
Trump threatens 50 percent “robbery” earments of EU when there is no agreement on July 9.
While the so-called sector tariff is 25 percent for cars and car parts, and 50 percent for steel and aluminum, still in 10 percent tariffs.
Many countries are watching to make many concessions to get an easy deal. Referring to the UK-US Agreement, a senior EU diplomat said Bloc “should still hope that the EU with 450mn people have more trading power than the UK”.
A UK-style style can be complicated for the sector if it involves a quota system. Trump agreed to cut a 27.5 percent of British cars to 10 percent for the first 100,000 vehicles sent from the UK. A similar deal for the EU leaves member states fighting the audience allocation.
Another senior diplomat says “The mandate we give to the Commission … go to the lowest tariff possible”. They add “10 percent not the mandate we give,” refers to the UK, who accepts 10 percent levy in most things to stay in place.
If the agreement is “unbalanced”, the diplomat said, EU can be “ready to carry out” counters tariffs.
Bloc has already agreed but the application of Retaliated tariffs has been suspended for the US items and prepares an additional American target package.
Germany’s economy depends on exports and hit tariffs. Acea, the body of the automobile industry, said carmakers have lost “single-digion millions as a result. The German car industry in about 5 percent of GDP in the country.
The US is the second largest market for export to the EU vehicle after the UK. In 2024, more than 750,000 cars are exported, valued at € 38.9bn. US exports 169,000 to EU at € 7.8bn value, according to Acea.
Among the German German shipment, the BMW is more likely to suffer that US counts 25 percent tariff from July. BMW Chief Executive Eliver Zipse told investors in the middle of May that administrative management of 195,000 vehicles worth $ 10bn, from its plants in Spartanburg.
BMW, Mercedes-Benz and other European European carmakers push US to allow a Duty Drawback program, which helps them to obtain refunds of tariffs when vehicles are also exported from America.
Senior executives from a maximum of three German shipment met Trump in the White House in the middle of April. Merz also brooted the car issue with Trump in their earning Oval Office early this month.
“I said I was driving an American car with a German brand,” says Merz after the US presiding explanation including US vehicles before it is exported to Europe.
As Merz forces the EU to reach US agreement as soon as possible, some German cargoes are less optimistic. “It’s a mixture of a bag at the moment,” an automotive officer said. “At the end of the day, it is the EU negotiable in the US.”
Another person in a German carmaker said: “Negotiations as a little bound. It is disappointing.”
