President Trump reportedly has outlined plans to potentially ban the sale of German luxury cars in the United States. Affected makes would include Mercedes-Benz, Audi, Porsche and others.
Forbes reported on Thursday that the president reportedly first mentioned the plan to French President Emmanuel Macron. Diplomatic sources said President Trump wants to maintain the German ban until “no Mercedes models rolled on Fifth Avenue in New York.”
The news follows the potential for new auto tariffs as high as 25 percent on imported cars to the United States. The tariffs are envisioned to boost U.S. auto production. Both Mercedes-Benz, Volkswagen and BMW operate manufacturing facilities in the U.S. as well.
No official announcement has come from the White House on such a proposal, but should such a ban go into effect, would it be good for GM?
Foremost, it’s hard to imagine major German luxury makes simply closing up shop in the U.S. with their vast dealership networks and aftersale support. However, in a world where major German makes exit the market, that would leave Japanese and American luxury brands as the only options.
It’s also not the first time President Trump has called out German carmakers. Last year, the president called the Germans “very bad” and said he wants to stop German vehicle sales in the U.S.