- Mercedes has suggested that EU lawmakers could allow US cars to be imported duty-free.
- The automaker’s boss is eager to see Europe and the US negotiate a good trade deal.
- It remains to be seen if a deal could encourage more European shoppers to buy American cars.
European automakers have been in the crosshairs of President Donald Trump ever since he returned to the Oval Office. According to Trump, it’s not fair that so few US-made cars are sold in Europe. He believes tariffs can help to even out some of these trade imbalances, and they’ve already started to hit European auto brands. However, negotiations are underway, and Mercedes-Benz believes it has the solution.
The boss of Mercedes, Ola Kallenius, has suggested that European lawmakers could allow US-made cars to be imported duty-free into the continent in exchange for tariff waivers on vehicles made in the EU and sent to the US.
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“For every car that leaves the USA or Europe, a car from the other side comes in duty free,” he suggested, according to Reuters. “We have put this idea to both sides and it is a possible component of the negotiations between the USA and the EU.”
Kallenius added that Mercedes is contributing ideas to potential trade changes, but notes that negotiations are still being done at the EU level.
“As a company, we hold talks with political decision-makers – in the EU as well as in China and the U.S.,” he said. “However, negotiations take place at EU level because trade policy falls within the EU’s remit. We are available as a sounding board, contributing ideas and presenting scenarios showing how certain decisions would affect us.”
More American Cars In Europe?
Historically, American cars haven’t enjoyed much success in Europe, certainly not to the degree that European cars have in the United State. Although President Trump may think this is unfair, there are several reasons for it. Perhaps the most significant factor is that fuel is significantly more expensive in Europe, often three or four times pricier than in the United States. That massively limits the appeal of gas-guzzling vehicles built in the US.
Then there’s size. American-made cars are generally larger than those in Europe, particularly in the case of pickup trucks. While they’re great for US roads, European cities generally have much tighter roads.
The numbers tell the story. According to the BBC, 692,334 vehicles made in the EU were exported to the US in 2022. In contrast, just 116,207 vehicles built in the US found homes in Europe. So it’s not exactly a close race, and it’s fairly obvious who would benefit most if tariffs were scrapped on both sides
