Mercedes-Benz, a prominent German automaker, has advocated for the elimination of tariffs on car imports between Europe and the United States, amid threats from US President Donald Trump to increase duties on European Union goods.
Ola Kallenius, the CEO of Mercedes-Benz, expressed in a Thursday interview that the EU imposes a 10 percent tariff on cars imported from the US, while the US maintains a 2.5 percent duty on vehicles from the EU.
Kallenius suggested to the Handelsblatt business daily that reducing tariffs to zero on both sides would promote reciprocity and foster growth rather than hinder it. He emphasized that export-reliant European industries have a greater need for free trade compared to their American counterparts.
Furthermore, Kallenius indicated that Europe, more than any other region, should ensure global markets remain open and that there is a fair structure for international trade.
President Trump has issued warnings about imposing 25 percent tariffs on products from the EU’s 27 nations and has endorsed plans for wide-ranging “reciprocal tariffs,” potentially affecting both allies and adversaries starting April 2.
These potential US tariffs on imported cars pose significant challenges for Mercedes-Benz and other European manufacturers, as many vehicles they sell in the US are imported.
Kallenius noted that Mercedes-Benz has been engaged in large-scale production in the United States for years but acknowledged that the company is preparing for the proposed US duties. He highlighted the importance of monitoring the procurement of components, logistics, pricing, and other related factors.
