President Trump would maintain his trade policy to stop Mercedes-Benz models in the US. Trump told that French President Emmanuel Macron last month, CNBC said with a reference to German magazine Wirtschafts Woche. The president is gearing up to block German luxury carmakers from the U.S. market, according to the report.
The weekly business magazine reported citing numerous U.S. and European diplomats who spoke on conditions of anonymity, that Trump told Macron last month he would maintain his trade policy with the aim of stopping Mercedes-Benz models from driving down Fifth Avenue in New York. The report didn’t give any further details on what policies would be used to effectively ban the premium carmakers.
The report came on the heels of the news that the U.S. Department of Commerce launched a probe into automobile imports to determine whether they “threaten to impair the national security” of the U.S. That could lead to tariffs of up to 25 percent on the same “national security” grounds used to impose metal imports charges in March.
Europe’s autos sector was trading lower shortly after the report was published Thursday, with German automakers leading the losses during mid-morning deals. Shares of Daimler, Porsche and Volkswagen were all trading off around 1 percent on the news.
Volkswagen was not immediately available for comment when contacted by CNBC Thursday, while Daimler refused to issue a statement.