Trump takes German automakers to task for Mexican imports

President-elect Donald Trump warned German automakers of a 35 percent tariff on imports from Mexico if they continue producing cars there instead of building them in the United States.    President-elect Donald Trump, in an interview with the Bild newspaper, warned German automakers Monday of a 35 percent tariff on imports from Mexico if they continue producing cars there instead of building them in the United States. 
   In recent weeks, Trump has publicly chastised Ford Motor Co., General Motors and Toyota for investments in Mexico and threatened them with a similar tariff. No details about how such a punitive tax would be implemented have been given, but under international trade rules, nation’s can implement emergency tariffs for up to 150 days.
   BMW, Audi and Daimler’s Mercedes-Benz are in the midst of building assembly plants in Mexico, while Volkswagen (which also owns Audi) already produces vehicles there. But all three companies also have significant operations in the United States, with Volkswagen producing cars at a plant in Chattanooga, Tenn., and BMW operating a large plant in South Carolina for domestic and export sales.
   Germany’s auto industry and politicians said Trump is unwisely scapegoating automakers for their trade practices, according to a Reuters report on Trump’s charges.
   For an in-depth analysis of the auto industry’s dependence on Mexico and how Trump’s trade position’s could impact the North American Free Trade Agreement, see a series of stories in American Shipper’s new “Adam Smith Project,” including “NAFTA in the crosshairs,” “Will NAFTA unravel under Trump?” and “Rising tide lifts Mexico carmaking.”