WORLD NEWS FOR MONTENEGRO DIASPORA
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AUTHOR:M.J. GDNUS
Trade tariffs on imported vehicles announced this week by US President Donald Trump could lead to a sharp decline in German car exports to the US, according to Deloitte data.
Exports of vehicles and auto parts from Germany, where the automotive sector is a key pillar of the economy, to the US could fall by up to 29 percent, according to a Deloitte analysis.
That would correspond to a sales reduction of 8.2 billion euros, or 8.84 billion dollars, SEEbiz reports.
The 25 percent tariffs are set to take effect on Wednesday, according to a White House statement.
The Deloitte analysis is based on data from the Global Trade Analysis Project, an international research network for analyzing trade flows.
Overall, German manufacturers sold 1.3 million cars in the US last year, said Harald Proff, head of Deloitte's global automotive practice.
German automakers that already have their own factories in the U.S. cannot simply move more production there, he argued, because American factories are already operating at 70 percent capacity.
