US President Donald Trump intends to withdraw German automakers from the United States, so he told French President Emmanuel Macron that he wants Mercedes-Benz to no longer drive around New York, according to the German publication Wirtschaftswoche.
German car manufacturers control 90% of the American premium car market: BMW owns the Rolls-Royce and BMW brands, Daimler controls Mercedes-Benz, and Volkswagen owns the Bentley, Bugatti, Porsche and Audi brands.
The Trump administration has opened a trade investigation into how car imports harm the US auto industry.
Citing several unnamed European and American diplomats, the magazine wrote that Trump had told Macron in April that he would stick to his trade policy long enough for Mercedes-Benz cars to disappear from the streets of New York.
Within the EU, Germany is the largest car exporter to the United States.
US imports of cars to the EU last year totaled € 6.2 billion ($ 7.3 billion), while unit exports to the United States exceeded $ 37 billion, according to the ACEA industry association in Brussels.
Last year, German automakers assembled 804 thousand cars at factories in the United States, but exported another 657 thousand to North America from Germany, according to the VDA industry association.
As Vesti.Ekonomika wrote, the US Presidential Administration Donald Trump launched an investigation to find out if importing cars and trucks threatens national security. The results of the inspection may become the basis for the introduction of new import duties on automobiles.
“Major industries, such as automobiles and auto parts, are critical to our strength as a nation,” Trump said.
The investigation will be conducted in accordance with the same law, on the basis of which the United States imposed duties on imports of steel and aluminum.
The possibility of introducing an additional duty on the import of cars in the amount of up to 25% is also being considered.
Media: US agrees to leave Deripaska 40% in En +
The U.S. Treasury has signaled that it could allow Oleg Deripaska to maintain a 40% stake in En + Group as part of a deal that would save the company from sanctions. It is reported by Bloomberg, citing a source familiar with the situation.
According to the interlocutor of the agency, the US Treasury did not name a specific goal for Deripaska’s stake. The agency only made it clear that the businessman’s share in En + should be significantly less than 50%. Now Deripaska owns about 66% of the company.
On April 6, the US Treasury Department issued a sanctions list to which Oleg Deripaska and the RusAl and En + companies controlled by him were included. The US Treasury Department later said that sanctions could be lifted from RusAl subject to a change in the controlling shareholder.
According to Vesti.Ekonomika, on May 18, the board of directors of En + Group approved the plan of its independent chairman Lord Gregory Barker to lift US sanctions on En + Group and its RusAl subsidiary. The plan provides for the abandonment of control over En + by Deripaska and a reduction in its share to less than 50%.
Deripaska resigned from the board of directors of En + Group, and also left the board of directors of RusAl. En + Group owns a 48.1% stake in RusAl.
RusAl CEO Aleksandra Buriko resigned on May 23. Seven board members leave the company: Vladislav Soloviev, Siegfried Wolf, Maxim Sokov, Dmitry Afanasyev, Gulzhan Moldazhanova, Olga Mashkovskaya and Ekaterina Nikitina. Their resignation will take effect on June 28, 2018.
The resignation of top management has also become part of the company’s efforts to exempt from sanctions.
En + is expected to present new advice to the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) by the end of June and file an application for de-listing in July, a Bloomberg source said.