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German automaker Mercedes-Benz called for both Europe and the United States to abolish prices on car imports, while US President Donald Trump threatens to hike on EU.
Ola Kallenius, head of the German car manufacturer, said in an interview published Thursday that the EU takes a 10% tariff on America’s imported cars, while the United States has a duty of only 2.5% on block vehicles.
“Let us lower these prices on both sides to zero,” he told Handelsblatt Business Daily.
“It would be a reciprocity and it would create growth instead of stifling it,” he said, adding that European export industries needed free trade more than their American counterparts.
“Europe has more interest than anyone to ensure that the global markets remain open and that there is a fair framework for international trade,” he said.
Trump threatened to hit EU products at 27 nations with 25% prices and signed plans to sweep “reciprocal rates” which could knock on both allies and adversaries from April 2.
The American prices on imported cars will create a major headache for Mercedes and other European manufacturers, as many vehicles they sell in the United States are imported.
Kallenius said Mercedes “has produced a large scale in the United States for years”, but said that the automaker was also preparing for American tasks.
“We pay attention to the supply of each component, logistics, price and many other factors,” he said.
This story was initially presented on Fortune.com
