US PRESIDENT Donald Trump’s threat to slap high import tariffs on Europe-made cars are bad news not only for Germany but also for Finland, reports YLE.
Trump and Washington are believed to be considering raising the tariffs on cars imported from Europe from 2.5 to 25 per cent, potentially raising the retail prices of such cars by over 5,000 euros, according to the public broadcasting company.
YLE on Monday wrote that the tariff hike could prove fateful for the assembly plant of Valmet Automotive, a contract manufacturer for Germany’s Daimler AG, in Uusikaupunki, South-west Finland. Most of the Mercedes-Benz cars manufactured at the plant are exported first to Germany and then to the United States.
Olli-Pekka Penttilä, the director of statistics at Finnish Customs, told YLE that Finnish car exports could dry up quickly if the tariffs are moved directly to retail prices.
“Finnish car exports are ending up increasingly in the United States,” he highlighted.
His assessment was echoed by Jan von Gerich, a senior analyst at Nordea.
“[The Research Institute of the Finnish Economy] ETLA has estimated that over 10 per cent of jobs in the automotive industry could disappear [if the tariffs were adopted], making the impact substantial,” he commented to the public broadcaster.
Aleksi Teivainen – HT
Source: Uusi Suomi