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European Automakers Seek Dialogue with Trump to Avoid Tariffs

European Automakers Seek Dialogue with Trump to Avoid Tariffs

European car manufacturers plan meetings with U.S. President Donald Trump in response to proposed tariffs on imported vehicles.
European automotive manufacturers are organizing a series of meetings with U.S. President Donald Trump following his threats to impose tariffs of up to 100% on imported vehicles.

This initiative, led by John Elkann, chairman of Stellantis Group, aims to establish connections with the new administration amid potential economic and trade policy shifts.

According to industry sources, key executives from major European automakers with operations in the United States are expected to hold discussions with Trump's administration.

These discussions come in light of significant upcoming changes in U.S. economic and trade policies under Trump’s leadership.

John Elkann has already met with President Trump twice before his formal inauguration, citing concerns over the potential impact of tariffs on countries like Mexico and Canada, where Stellantis maintains critical manufacturing operations.

Stellantis operates assembly plants in Saltillo and Toluca, Mexico, producing RAM trucks and Jeep Compasses, respectively.

The company also has facilities in Ontario and Windsor, Canada, where Chrysler and other models are manufactured.

President Trump, upon taking office, has not immediately enacted the tariffs.

However, he has expressed intentions to impose a 25% duty on imports from Canada and Mexico starting February 1st, with a possible escalation to a 100% rate for imports from regions such as Europe and China.

In his inaugural address, President Trump also reversed an executive order from 2021 signed by his predecessor, Joe Biden, which aimed to ensure that half of all new vehicles sold in the United States by 2030 would be electric.

Volkswagen, one of the affected European manufacturers, voiced concerns over the potential economic impact of the proposed tariffs on American consumers and the global automotive industry.

Volkswagen has extensive manufacturing operations in Mexico, including its largest plant in the country with an annual production capacity of about 350,000 vehicles, all intended for sale in the U.S. market.

Additionally, Volkswagen plans to import vehicles from China through its Cupra brand, which could face a 100% penalty tariff, threatening its expansion plans in the U.S.

BMW and Mercedes-Benz, other European automakers with significant stakes, also face potential challenges from Trump’s protectionist policies, which favor domestic manufacturing.

In response, European manufacturers are expected to propose increasing production within the United States during the upcoming meetings.

This move could help them avoid tariffs and take advantage of proposed tax incentives, reduced energy costs, and streamlined bureaucratic processes under Trump's administration.
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