U.S. and E.U. Auto Tariffs: What to Expect
The global auto trade reaches 8% of global trade and is larger than U.S.-China trade flows at 3%. The U.S.plays the most crucial role in the market for the European car trade. Let’s dive deeper into the topic of U.S.-E.U.auto tariffs and find an exceptional automotive merchant account for your company.
Auto Tariffs: Automotive Merchant Account
This year, U.S. light-vehicle sales have slowed down. About 8.4 million light vehicles were sold in the U.S. automotive industry from January 2019 to June 2019. That figure was about 8.58 million units in 2018.
The U.S. accounts for 29% of the value of all exported cars from the E.U. Companies based in the U.S. provide 19% of their car export value to the European market.
During the period from April and June 2019, consumers in the U.S. purchase nearly 734.000 GM vehicles. As a result, GM became the producer of every 6thautomobile sold there till June 30, 2019.
Volkswagen and BMW, and other European car manufacturers export over 59% of the cars they produce in the U.S. About 6% of the working population in the E.U.works in the car sector. The German car companies BMW, Mercedes, and Volkswagen have employed nearly 120.000people by creating manufacturing plants in the southern U.S.
In 2018, European auto manufacturers produced 1.7 million cars in the U.S., which made up 15% of the overall U.S. car production. Now, the European auto industry would get hurt by the 25% U.S. tariff on cars and car parts. More particularly, Germany is likely to get hurt more since it’s on the hook for 55% of all E.U. auto exports.
Are you in the automotive industry? How are you going to navigate through the ebbs and flows in the space? One thing is for sure: you need to find a true payment processing expert in your field that can help you move forward without running into obstacles.
With a respectable credit card processor that knows the specifics of your industry, you can open an automotive merchant account fast and easily. This is how you can be sure to enjoy the cheapest rates and exceptional terms for online transactions.
Tariffs vs. EU Trade Talks
Talks over the car trade between the U.S. and Europe haven’t been moving rapidly: this has to do with disagreements concerning the issue of whether agricultural products should be included in a deal or not.According to Merkel, Germany wants the E.U. to enter into a trade agreement with the U.S. without losing time.
According to E.U. officials, it’s more preferable to work with the U.S. to reform the World Trade Organization (WTO) and control China’s behavior on global markets. However, they’dgive their sharp response if Washington raisestariffs on cars.
As Cecilia Malmstrom,European Trade Commissioner, notes, cars built in the E.U.are harmless to U.S. national security: U.S. tariffs shouldn’t be imposed on them.
To sum up, the 25% U.S. tariff on cars and car parts is likely to hit the European auto industry.To grow your automotive business without challenges, work only with a reputable payment processing company in your field.
Author Bio: As the FAM account executive, Michael Hollis has funded millions by using automotive merchant accountsolutions. His experience and extensive knowledge of the industry has made him finance expert at First American Merchant.