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UP CEO Lance Fritz on Trade Disruptions and Risk to the Economy
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<p>[quote user="Shadow the Cats owner"]Volkner the total includes all the cars imported into the USA from the EU the Volvo's from Sweden all the Italian sports cars the British cars plus all the parts. That figure listed was for all makes and models and included all parts shipped overhere for assembly and or repairing cars. Could Europe stand to lose that much out of their economy risking that many jobs. It is not just finished cars I was talking about the parts also add up. [/quote]</p> <p>You should be correct with your numbers. The whole EU-USA trade deficit is only $120 billion not 150 billion. Car exports to the USA are about $55 billion. If you take services into the equation the trade with the is balanced</p> <p>And yes we can afford this. The German car manufacturers built 16.5 million cars in 2017. The Export to the USA was about 3%. For other EU countries it is not much different. German cars are kind of a status symbol in USA I think. The biggest market for German cars is China.</p> <p>[quote user="Shadow the Cats owner"]You see the problem they are hitting us with tarrifs on things their country needs to even FEED their over 1 billion people with. [/quote]</p> <p>We'll see where they'll get the agricultural goods. It is not that China will not buy from the USA. It will be less and at lower income for the farmer as others are now competetive that don't bear the tariff.So the farmers need to adjust their prices</p> <p>Take pork: The USA exported 2.45 million tonnes to China in 2017, Germany 1.86 million tonnes. We have a surplus of about 4.5 million tonnes. There are a lot of countries in Africa that would be glad if our cheap pork wouldn't overflow their markets anymore so that their agriculture can recover.</p> <p>China tries to hit were it can hurt the USA and especially Mr. Trumps supporters most. This is not a game and the USA started it. The EU did the same when it imposed tariffs on products from states were Republican leaders come from.</p> <p>China negotiated with the USA and there were first results but the USA or better Mr. Trump thought better of it. The EU offered to negotiate but as I said not with a gun at the head. I thought it is called negotiations.</p> <p>[quote user="Shadow the Cats owner"]We have a choice China really does not when it comes to where it is going to buy enough soybeans rice and pork to feed its population. [/quote]</p> <p>You'll be surprised how many products you'll need to buy from China. Even with 25% tariffs many Chinese products will be less expensive than Made in USA or elsewhere.</p> <p>It is not make-or-break. It is about rising costs for consumers on both sides. There will be no winners.<br />Regards, Volker</p>
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