”On the thorny issues of regulations, consumer standards and taxes, the EU and its member states cannot give much ground,” Holger Schmieding, chief economist at Germany’s Berenberg bank, declared. ”They cannot alter the way they run the EU’s vast internal market according to U.S. demands, which are often rooted in a faulty understanding of how the EU works.”
‘Consequence for many companies’
Economists and companies state higher tariffs will mean higher prices for U.S. consumers on imported goods. Importers must decide how much of the extra tax costs to absorb through lower profits and how much to pass on to customers.
Mercedes-Benz dealers in the U.S. have declared they are holding the line on 2025 model year prices ”until further notice.” The German autocreater has a partial tariff shield becautilize it creates 35% of the Mercedes-Benz vehicles sold in the U.S. in Tuscaloosa, Alabama, but the company declared it expects prices to undergo ”significant increases” in coming years.
Simon Hunt, CEO of Italian wine and spirits producer Campari Group, notified investment analysts that prices could increase for some products or stay the same depconcludeing what rival companies do. If competitors raise prices, the company might decide to hold its prices on Skyy vodka or Aperol aperitif to gain market share, Hunt declared.
Trump has argued that creating it more difficult for foreign companies to sell in the U.S. is a way to stimulate a revival of American manufacturing. Many companies have dismissed the idea or declared it would take years to yield positive economic benefits. However, some corporations have proved willing to shift some production stateside.
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