Mr Trump and reality collide: Germany responds to tariff threat

DONALD TRUMP’S world and reality collided yesterday when Germany responded to his threat to impose a 35% tariff on BMW cars. 

In a measured, real-world response Germany’s deputy chancellor and minister for the economy, Sigmar Gabriel, said yesterday that a tax on German imports would lead to a “bad awakening” for US carmakers as they rely on transatlantic supply chains. “The US car industry would have a bad awakening if all the supply parts that aren’t being built in the US were to suddenly come with a 35% tariff... it would make the US car industry weaker, worse and above all more expensive,” he said. Gabriel also pointed out that BMW’s biggest car manufacturing plant is already in America, at Spartanburg in South Carolina.

Speaking to The Times and Bild Mr Trump said he wanted to deal with the “out of balance” car trade between Germany and the US. “If you go down Fifth Avenue everyone has a Mercedes Benz. How many Chevrolets do you see in Germany? In a grown-up response Gabriel said the best way for America to change that situation would be to “build better cars.”