Last year, Donald Trump threatened to impose higher tax on BMW cars built in Mexico. In fact, the US President allegedly reprimanded Germany for having a massive imbalance in trade with his country, especially with regards to cars.
In latest news, Reuters reports that importers would soon have a tough time bringing their vehicles in the U.S. as the Trump administration is considering ways to implement stricter environmental standards on imported automobiles. The story was first reported Friday by the Wall Street Journal. The Wall Street Journal reported that the US President had asked several agencies to pursue plans to use existing laws to subject foreign-made cars to stiff emission standards.
White House spokeswoman Sarah Sanders said, “President Donald Trump will promote free, fair and reciprocal trade practices to grow the U.S. economy and continue to (bring) jobs and manufacturers back to the U.S.”
The report further suggests that U.S. automobile manufacturers have long urged removal of non-tariff barriers in Japan, South Korea and other markets that they believe unfairly hinder U.S. exports. There are also concerns that any new non-tariff U.S. barriers could violate WTO rules.
The non-tariff barriers could have a greater potential effect proportionately on European automakers, who import a large number of cars from plants outside the United States.
Source: Reuters / Feature Image Source: Superior Auto Design