Trump threatens to slap 35% tariff on BMW imports

In an interview with Bild, a German newspaper, President-elect Donald Trump warned German carmaker BMW that the United States will put into effect a 35 percent border tax for cars manufactured in the company's new plant in Mexico and exported to the US.

According to Bild, Trump said the German automaker should build its new auto factory in the United States because this would be "much better" for the company.

Donald Trump is now threatening BMW with a whopping 35 percent tariff, prompting Germany economy minister to denigrate the quality of American cars.

Like most auto manufacturers, German automakers have also expanded production in Mexico, where labor and global trade are cheaper than the U.S.

He also suggested the U.S. should instead focus on building better, more sought after cars.

'I would wait and see what the Congress has to say about that, which is mostly full of people who want the opposite of Trump'.

Germany's Vice Chancellor and Economy Minister Sigmar Gabriel told Bild that imposing such tariffs would make "the American auto industry worse, weaker and more expensive".

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"We export 70 percent of our USA production to 140 markets around the world". Its plant in Spartanburg, South Carolina (BMW's biggest worldwide) exports some 70% of what it produces, much of it going either back to Europe or to Asia.

According to a CNBC article, German carmakers BMW, Daimler and Volkswagen have invested heavily in Mexico, but they also manufacture in the United States. "I would tell BMW that if you are building a factory in Mexico and plan to sell cars to the US, without a 35 per cent tax, then you can forget that", he added. After taking heat throughout the presidential campaign and after the election, Ford scrapped plans to build a $1.6 billion plant in Mexico.

The BMW plant in San Luis Potosi, which is expected to commence operations from 2019, will build the BMW 3 Series with the output intended for the world market.

It is the company's largest plant anywhere in the world, supporting 70,000 jobs, and it is the single biggest exporting plant in the U.S., according to the group.

Ford has said it will cancel a $1.6bn (£1.3bn) plant it planned to build in Mexico and instead extend operations at its factory in MI. The Munich-based carmaker said it has a "deep level" of operations in the USA and noted that its plant in Spartanburg, South Carolina is its biggest worldwide.

Donald Trump seems in no mood to relent on his war on manufacturers who make their products outside and sell in America.

  • Douglas Reid