Continuing his aggression, President-elect Donald Trump has threatened the German automobile company, BMW, to face 35 percent tariff on import to US.
It came out as a response to BMW’s decision to establish a factory in Mexico, which according to Trump will hit the US job market.
Talking to British and German media, he affirmed that if BMW plans to build a factory in Mexico and sell cars to US, then this is not going to work. Instead the company should think about basing their resources in US.
He added soon after that the carmakers will instead need to have their manuf
It is to be noted that this is not the first time he has taken a serious interest in bringing automobile factories home. During his election campaign, he targeted Ford followed by General Motors and Toyota to compel them reduce their facilities in Mexico.
The threat was not received with much concern on the other hand, as VDA’s President Matthias Wissmann warned that US will be shooting itself by placing such barriers.
Similarly, Germany’s Deputy Chancellor and Minister for Economic affairs, Sigmar Gabriel remarked that instead of imposing such taxes US should work on the quality of its automobile industry. To attract customers, you must give them the best.
This decision seems to be a more politically oriented move rather than a commercial stunt. Mexico has recently recovered from its economic chaos, which is not at all favourable to the upcoming Republican administration. Moreover, it is generally believed that Trump has no diplomatic genius, which might end up in doing such bad decisions.