Striking the EU, the US will impose an additional 25% tariff on heavy trucks
Trump announced that he would impose a 25% tariff on all imported heavy trucks, and this time it is targeting Europe, in other words, targeting the three heavy truck siblings of Volkswagen's German subsidiary, Scania, Volvo, and MAN.
Especially Volvo holds the fourth, fifth, and sixth positions in the U.S. heavy truck sales (Volvo subsidiary), and the seventh is a subsidiary of Mercedes-Benz. With a 25% tariff added, if it is combined with an additional 15% automobile import tariff, the sales of these brands will basically collapse next quarter. If not combined, for the transportation industry which is heavily cost-sensitive, it will also be greatly reduced.
The key point is that these American-style heavy trucks, due to regulatory issues, especially the long-nose design, cannot be resold to China or Europe, and can only be left to rust. Now it depends on whether Volkswagen can convince the German government to negotiate with the U.S., otherwise Volkswagen will have to lay off workers.
Original: www.toutiao.com/article/1844292179952711/
Statement: This article represents the personal views of the author.