Trump reported to impose ban on European luxury car imports

1 June 2018

Trump reported to impose ban on European luxury car imports

US President Donald Trump wants to issue a ban on the import of German luxury cars such as Mercedes-Benz, according to a new report from CNBC and German magazine WirtschaftsWoche. 

Mr Trump reportedly told French President Emmanuel Macron last month during a state visit that he wants to maintain his trade policy with the aim of stopping Mercedes-Benz from driving down Fifth Avenue in New York.

The report from the German magazine did not give any more details on the policies that would be utilised to effectively implement the ban.

The exclusive report has arisen just over two weeks since the US Department of Commerce launched an investigation into automobile imports to determine whether they “threaten to impair the national security”. Under the Trade Expansion Act of 1962, the Secretary of Commerce is able to determine “the effects of imports of any article on the national security of the United States.”

Shortly after the report was released on Thursday, Europe’s auto sector trading dropped significantly, with German automakers taking the initial blows of the losses during mid-morning deals.

The shares of Daimler, Porsche and Volkswagen were all trading off at only 1% as seen on news broadcasts.

The White House did not immedietly respond to CNBC’s request for comment.