How About If We Cut Tariffs to Zero on Light Cars and Trucks?

This is the highly regarded VW Amarok pickup truck. Would you like to buy one? Too bad! You can't.Volkswagen

Fight disinformation: Sign up for the free Mother Jones Daily newsletter and follow the news that matters.

The German auto industry has suggested that the US and Europe become a free-trade zone in light vehicles:

That would mean scrapping the EU’s 10% tax on auto imports from the U.S. and other countries and the 2.5% duty on auto imports in the U.S….“Germany has the right approach to resolving this trade disagreement among friends,” said U.S. Commerce Secretary Wilbur Ross. “If the EU were to reduce its 10% tariff on U.S. cars and trucks, that would be a positive first step toward trade that was more fair and reciprocal.”

One catch is that the Europeans also want a 25% U.S. tax on imports of light trucks—pickup trucks, sport-utility vehicles, and big vans—scrapped. Abolishing this relic of the Johnson administration could alienate U.S. auto workers, a core constituency for Mr. Trump in the midterms this fall. Mr. Ross didn’t comment on whether the U.S. would be willing to cut tariffs on trucks.

Well, this would sure call Trump’s bluff. As near as I can tell, scrapping the EU’s 10 percent tariff on American cars would have zero effect on European carmakers. Why? Because no one in Europe wants American-made cars in the first place. On the other hand, scrapping the 25 percent US tariff on light trucks would be a boon for European carmakers. I’m sure Trump has no idea that the US has a 25 percent tariff on European pickup trucks, but hey, that’s the problem when you mouth off on stuff you’re ignorant about, isn’t it?

In any case, this is precisely the kind of “level playing field” that Trump keeps insisting he wants, so he could hardly object. Europe ought to push hard on this, just as a way of embarrassing Trump. He’d have a hard time saying no, but the US auto industry would go nuts. The last thing they need is more competition in the lucrative light truck market from the likes of Fiat and Mercedes and Volkswagen. This could be fun.

DONALD TRUMP & DEMOCRACY

Mother Jones was founded to do journalism differently. We stand for justice and democracy. We reject false equivalence. We go after stories others don’t. We’re a nonprofit newsroom, because the kind of truth-telling investigations we do doesn’t happen under corporate ownership.

And we need your support like never before, to fight back against the existential threats American democracy faces. Fundraising for nonprofit media is always a challenge, and we need all hands on deck right now. We have no cushion; we leave it all on the field.

It’s reader support that enables Mother Jones to report the facts that are too difficult, expensive, or inconvenient for other news outlets to uncover. Please help with a donation today if you can—even a few bucks will make a real difference. A monthly gift would be incredible.

payment methods

DONALD TRUMP & DEMOCRACY

Mother Jones was founded to do journalism differently. We stand for justice and democracy. We reject false equivalence. We go after stories others don’t. We’re a nonprofit newsroom, because the kind of truth-telling investigations we do doesn’t happen under corporate ownership.

And we need your support like never before, to fight back against the existential threats American democracy faces. Fundraising for nonprofit media is always a challenge, and we need all hands on deck right now. We have no cushion; we leave it all on the field.

It’s reader support that enables Mother Jones to report the facts that are too difficult, expensive, or inconvenient for other news outlets to uncover. Please help with a donation today if you can—even a few bucks will make a real difference. A monthly gift would be incredible.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate