White House / EU Auto Summit Scheduled For December 4th…

This is one of those reports that seems small and appears way over there on the periphery. However, if MAGAnomics and trade are important to you, this story is very much worth paying attention to.

As CTH shared last week the White House reached out to EU auto executives to request a meeting.  There is a VERY STRONG likelihood the message within this meeting will surround potential tariffs, and questions from team Trump about the intents of EU (mostly German) automakers against the backdrop of the USMCA.

The potential for auto-tariffs terrifies the EU (specifically Germany), because most of their profits from within the industry come from access to the U.S. market.   Few major markets in the world can afford the scale of automobile purchases as a wealthy U.S.A. does.  The profit margins are much smaller in all other countries.  Without the U.S. market, these auto companies would be in deep financial trouble.  Enter Trump’s leverage:

BERLIN (Reuters) – Top executives from German carmakers Volkswagen, BMW and Daimler are finalizing plans for a White House meeting on trade policy next week, German and U.S. officials said on Thursday.

Officials from the carmakers, asking not to be named, said the meeting was tentatively set for Tuesday, and would include VW Chief Executive Herbert Diess, Daimler CEO Dieter Zetsche and BMW production chief Oliver Zipse.

President Donald Trump has been harshly critical of German automakers and what he sees as an unfair trade imbalance on autos.

He has threatened for months to impose tariffs on vehicles assembled in the EU, a move that could upend the industry’s business model for selling cars in the United States.

However, he has refrained from such a measure while Washington and Brussels undertake talks to cut other trade barriers.

The CEOs plan to make clear they cannot negotiate on behalf of the EU, people close to the matter said last week. (read more)

I love that last line: “CEOs plan to make clear they cannot negotiate on behalf of the EU“, that’s funny; and the best part is Trump knows exactly the silliness of that statement.  Whatever the German auto-sector demands, the EU delivers – P.E.R.I.O.D.

But seriously, the primary question for the U.S. team revolves around seeking to understand how the EU companies will comply with the new U.S-Mexico-Canada  (USMCA) trade pact to avoid the import tariffs.  [Angela Merkel is irrelevant]

The answer is more important to Mexico and the U.S. because no-one is foolish enough to build a manufacturing plant in the left-wing North known as Canada.  So POTUS wants to know how the EU is going to comply with the new 75% origination rules within the U.S. and Mexico agreement.

The outcome of the EU answer(s) will likely determine the scale of tariff that President Trump is considering on the entire industry.  President Trump is actually constructing a 10/25-year economic ‘business plan‘ for the entire country.

Stay tuned…. this is the fun stuff!

This entry was posted in Auto Sector, Donald Trump, Economy, Environmentalism, European Union, media bias, NAFTA, President Trump, Trade Deal, Uncategorized, USMCA. Bookmark the permalink.

131 Responses to White House / EU Auto Summit Scheduled For December 4th…

  1. Trump Train says:

    The tale of 2 Trumps the executive that is doing what we have long wanted putting America First building a solid economy yet its all at deep risk……………I hope the hell he has a plan come January.

    Liked by 1 person

    • He’s already deep into plans for 2020.

      Liked by 17 people

    • kiskiminetas says:

      He has plans in his head of what he was going to do thirty years ago. What say you trust the man completely, I and others do. Also quit watching the fake news because doing so will bring you peace of mind. I have done so and am calm, cool and at rest in my cold anger condition.

      Liked by 24 people

      • GrandpaM says:

        Like! With one little difference, I am calm with my anger waaay past cold.

        Like

        • kiskiminetas says:

          Cold Anger is where you take account of what all those who oppose MAGA have done to Trump/us and keep it to ourselves. Doing so has a calming effect on you (one of not showing or feeling nervousness, anger, or other emotions). Basically you are aware of what is going on but not at the same time letting it get to you. It is good for the heart, mind and soul.

          Liked by 9 people

      • Kalbo says:

        Yes, it is quite calming to simply ignore MSM (includes faux news networks).

        MSM is simply scripted deep state, socialism…simply un American. Zero interest in that trash.

        A major step in shutting out MSM was having no cable, DirecTV, Dish…

        CTH is my baseline to retain sanity. Also look at Gateway, Liberty, Whatfinger, Epoch, Rantingly…

        Liked by 12 people

        • Carrie2 says:

          Kalbo, wait and let’s see if Trump closes down the fake news companies. There is a history of other presidents closing them down. I think that would be good but since he always is well planned way ahead of time, this probably is also on his list. Actually watching him what he does reminds of setting the right traps to catch the rats and the rats are no longer around having fallen for the bait.

          Liked by 1 person

      • Payday says:

        I’ve finally done just that. Haven’t watched FOX since they called the House before the polls closed. I’m much calmer now.

        Liked by 6 people

      • Carrie2 says:

        kiskiminetas, when he was a candidate, I did my research and was amazed how some 30+ yrs. he already knew the situation and the huge mistakes made by our hired stupids in Congress. When asked if he would run for the WH back then, he said he wasn’t thinking of doing so but if necessary he would. His business experience, his businesses in other countries further informed him of what those countries were doing to America. Actually, I was fascinated with his foresight and how he could be in the WH and get so much done so quickly, and still has plans in his mind about what to do next. He is that far ahead of any other president ever and definitely more ahead of the creeps in Congress. He works to the point that I feel I am reading a super good book with all the problems and entanglements, but in the end all is made right. Actually his way of thinking, planning and executing is teaching many of us what we need to do to MAGA. I am also pleased that Melania is now more forthcoming in her presentations and expressing more directly to her naysayers. Loved what she said about those red Christmas trees and did it with a smile.

        Liked by 5 people

      • Pyrthroes says:

        KKM: Indeed yes. We do believe that Trump as an American Original is en par with Jackson and Polk, ranked fourth of 41 rateable Presidents from 1788. (Without double-counting Cleveland, Trump is incumbent 44, not 45). However his real-politik scenarios originated, DJT has manifestly marinated scenarios concerning China, the Euro-zone, and post-Soviet Russia from about age 45.

        Absent status-threatened demagogues’ spectrum of rabid partisan opposition, this Trump Administration would be seen for the world-historical force-of-nature that it is. As’t stands, it’ll likely be about a decade before this truth takes hold.

        Like

    • 🍺Gunny66 says:

      Trump Train,

      What on earth are you referring to?

      Should we make a list of his accomplishments?

      Have you read Sundance’s guidelines for posting?

      “Seek to understand. Then seek to be understood”

      How can we understand or reply to this statement:?

      “It’s all at deep risk?”…… What?……What’s all?…..He has a whole bunch of plans…….

      A plan for what? Share what you are referring to….

      Gimme a break…….Nothing more needs to be said…

      Liked by 3 people

  2. “President Trump is actually constructing a 10/25-year economic ‘business plan‘ for the entire country.”

    And we may thank God for it.

    Liked by 23 people

  3. fleporeblog says:

    Germany 🇩🇪 is as close as you can be to going into a recession! What you are describing will put them in it and for a very long time. The European Union will feel the pain as well. That is MAGAnomics on steroids Leverage.

    Liked by 24 people

  4. Heroic Dreamer says:

    Great post. and great comments. I will be following this. Thank you!

    Liked by 6 people

  5. Great post as a backdrop to Argentina, Sundance!

    POTUS has China scheduled for 25% (or more) Tariffs on $250 Billion of Exports on January 1st.
    [China’a about to see the effects of REAL Tariffs they can’t neuter with Currency Devaluations.]

    POTUS just finished a demonstration Shut Down of Mexican Exports to the USA this week.
    [Mexico now OWNS the Illegal Immigration problem and its Shut-Down consequences.]

    POTUS sets up for Auto Tariffs on the EU to light a fire under EU Trade Deal negotiations.
    [I’m thinking Auto Tariffs as a set-aside from the Trade Deal, like Steel & Aluminum for USMCA.]

    POTUS is about to have Lighthizer outline what to Tariff on the remaining $267 Billion from China.
    [No way Cheatin’ China will fess up to IP Theft … at risk of Sanctions & Reparations.]

    WINNING: President Trump has just created economic and emotional chaos going into the G20!

    Liked by 21 people

    • fleporeblog says:

      BKR I have a nugget that will make your night in reference to China 🇨🇳!

      From the article linked above:

      China is loading up on U.S. pork, despite import tariffs imposed due to the trade war, as a highly contagious swine disease ravages the Chinese hog herd.

      The world’s top hog producer and pork consumer last week placed its largest order for American pork since the trade war began, U.S. Department of Agriculture data showed on Thursday.

      The purchases are a signal that an outbreak of African swine fever is raising concerns of an eventual supply shortfall, potentially superseding trade tensions between the world’s two largest economies, brokers and traders said.

      Liked by 11 people

      • How about President Trump imposes Export Controls on pork until China pays REPARATIONS for IP THEFT!

        Liked by 5 people

        • GB Bari says:

          No use hurting our pork farmers – let them sell and add to the positive trade balance on our side.

          Liked by 4 people

          • I’m thinking our pork farmers have ready-made markets, and China’s demand will greatly exceed supply.

            Like

          • yucki says:

            Swine Fever Adds to China’s Economic Headaches

            BEIJING (AP) — Chinese pig farmers, already reeling from rising feed costs in Beijing’s tariff fight with U.S. President Donald Trump, face a new blow from an outbreak of African swine fever that has sent an economic shockwave through the countryside.

            First detected in August, the disease has killed 1 million pigs, prompting authorities to restrict shipments of most of China’s 700 million swine, even though nearly all are still healthy. That has disrupted supplies of pork, China’s staple meat, to big cities while prices collapsed in areas with an oversupply of pigs that farmers are barred from shipping to other provinces.…

            The outbreak adds to a swarm of challenges for Chinese leaders as they grapple with Trump over Beijing’s technology policy and try to shore up cooling growth in the world’s second-largest economy.

            “Farmers have been losing money in pig-breeding provinces for the past couple of months and their confidence has been shattered,” said Feng Yonghui, chief analyst of soozhu.com, a pork industry consultant.

            The cost of raising pigs spiked after Beijing retaliated for Trump’s tariff hikes on Chinese goods by slapping 25 percent duties on imported U.S. soybeans used as animal feed.…

            A big share of China’s population still depends on farming even after the country became one of the biggest manufacturers. The share of the workforce employed in farming has fallen to 18 percent from more than 50 percent two decades ago, according to World Bank data, but farm households still account for 250 million people.…

            https://www.manufacturing.net/news/2018/11/swine-fever-adds-chinas-economic-headaches

            Like

      • kiskiminetas says:

        Flep is that wild lettuce growing in your backyard?

        Liked by 1 person

      • Robert Smith says:

        I can’t tell how big that is.

        Liked by 1 person

    • Moultrie Flag says:

      This pede gets it. Classic persuasion.

      Liked by 1 person

    • kiskiminetas says:

      BKR that is how Trump “rolls” over countries, corporations and soon to come the Fed. Keep on truckin Mr. President…

      Liked by 2 people

  6. Publius2016 says:

    So SAD! Crying for the Glbalists! You dan see the desperation as they raid another Trump lawyer!!!

    Liked by 4 people

  7. wildbill2u says:

    I’m 78 and been following the news since about 1950. I was a U.S. history major. I have never seen nor heard of a President that acted so much like a Chief Executive with goals and plans and the smarts to negotiate his way to them. We are seeing a phenomenon.

    Liked by 30 people

  8. Mr BiG Time says:

    Oh …. we are paying attention Sundance! Thank you for the Info. …

    The squeeze is a beautiful thing to watch.

    MAGA !!

    Liked by 11 people

  9. Elric VIII says:

    Well, if GM is closing down factories here, why don’t the Germans just buy them and use them to produce cars here? GM saves money, the Germans save money by buying pre-existing facilities rather than building new ones, and the workforce will simply transition from one company to another. Bonus: More taxes collected here and not over there. Win-Win-Win!

    Liked by 8 people

    • lemmus1 says:

      …apples and oranges …depending on the plant, it could well be more cost efficient to build a totally new modern flexible production/assembly plant …the current GM plants have already been upgraded to max efficiency within their existing structures …iirc that’s certainly true of the Hamtramck plant

      Like

      • 🍺Gunny66 says:

        I think the major issue is:

        The Germans already have the plants i’m Mexico, but use parts made in China to complete the assembly of the cars prior to shipment to the US.

        So how would they “stop” using parts from China and use the parts from the US?

        Hmmmm……..relocating the plants to to US would work…….or how about having the parts made in the US………then import back to the US?

        Dunno……seems easy but a lot of working parts…..so to speak😎

        Liked by 1 person

    • Jake says:

      Might happen. Maybe that’s on the agenda and the CEO meeting.

      Like

  10. zozz1 says:

    Trump is changing the world, bit by bit, without firing a shot. He grasps the weak and strong points of the players, and he quietly exploits them, always with the goal of protecting and enhancing the economy of the USA. Lots of oblique moves…some zigs and zags….but he knows where the goal posts are. Fascinating! We are watching the unfolding of the best drama of our lives…in real time.

    Liked by 8 people

  11. bflyjesusgrl says:

    Just love the exchange between Piglet and Pooh!!!

    Liked by 4 people

  12. Franklin says:

    Unfortunately Asia is the future for automakers.

    Liked by 1 person

    • Jake says:

      Those numbers might be out of date. Things are a changing on the world scene.

      Like

      • swampratterrier says:

        Besides where you have such high population density and towns only a mile or two apart, autos are over the top expensive status symbols.

        Mass transit is the only way to go for those energy anorexic states.

        Like

    • That’s a static rear-view mirror look.

      BEFORE President Trump ignited our GDP growth, stopped the Globalist offshoring and exfiltration of our wealth, started holding the free world accountable for funding our defense protections, and put Americans to work to end the Dependency State.

      ALMOST halfway through his 1st Term with over half of his Administration’s appointees not confirmed, embedded Obama Obstructionists, a UniParty Congress bought by Pay-for-Play Globalists, an Invasion of Illegals, Nationwide Election Fraud, a Court System Blockade, continuing Sedition from the Deep State, that pesky Mueller Thorn Team and the Global Fake News Media.

      WAIT till we see what he gets done over the next 2 years and his 2nd Term!

      Liked by 1 person

    • GrandpaM says:

      Not many Asians can afford Benzes, Beemers, or Audis. And don’t forget their tarriffs and non-tariff barriers.

      Like

    • JoAnn Leichliter says:

      Maybe.

      Like

  13. railer says:

    “…the primary question for the U.S. team revolves around seeking to understand how the EU companies will comply with the new U.S-Mexico-Canada (USMCA) trade pact to avoid the import tariffs.”

    Very astute observation, my friend, on this very Trumpian strategy. That is the step we’re at. Now is the time to listen, and these guys are being asked to come and speak their piece. Trump has been very open about his strategy, and they’ve heard it again and again, and seen it in action now with multiple negotiations. They’re not here guessing what might happen, they already know. They’ve had time to digest it all, and develop their own approach to it. They know good and well he’s after fairness and reciprocity, and he means it.

    The set up has been masterful and now it’s time to just sit back and hear them out. The BMW press release sends a message that they’re open and willing to deal, rather than dig their heels in and get humiliated like Sparklesocks. So the German automakers are coming to this with good faith and preparation. The set up is simply masterful. Not hard to see why Trump is known as a dealmaker. His recent deals were hard fought, but Trump’s perseverance then has spurred his negotiating partner to a more orderly process now.

    Speaking of 25 year plans, I believe Trump’s got his eye on a 25 year plan for all of the Americas, and so do the Germans, for profit and sales at least. That’s a nice carrot to throw out there, setting up shared goals and parallel activities that would be win-win-win. Not sure how this would go down, but you gotta think big, and these are our next door neighbors. We want fairness for everybody afterall.

    Liked by 9 people

    • Payday says:

      Great post!

      Liked by 1 person

    • Kent says:

      ..but that I could organize my thoughts and write so well…

      well said, railer…

      Liked by 1 person

    • Nice anticipation, railer, with “now it’s time to just sit back and hear them out.”

      Secretary Wilburine Ross’ deep expertise in the Auto industry is paying rich dividends.

      2nd-level question for each of them will likely be where they see opportunities for each party to WIN and how he proceed to make them happen.

      3rd-level question for each of them – should they be playing ball – might be how they’d like to protect their Americas profits from EU over-reach as its Socialist System enters INSOLVENCY.

      Agree that Trump’s got an [Automotive] Plan for the Americas.

      Looks like he’s well-advanced in building the foundation for his Vision for how he’ll evolve the Global Economy as well!

      Liked by 1 person

    • Bluto Ruffian says:

      Railer, good take on the VSG! Trump said that America has always been good to / for him in all his business dealings and successes. He said he wanted to give back to his beloved country what was taken from its citizens by the globalist deep state by leveling the playing field with ALL America’s trading partners. Once he does this, it will be extremely difficult to undo without exposing the radical underpinnings of the globalist cronies here and abroad. This is the destiny for which PDJT spent over 50 years preparing for. This is the destiny I voted for two years ago. Don’t mess with MY DESTINY!

      Liked by 3 people

  14. Interesting Post – tanx 4 da edumuncashun SD!

    Like

  15. Payday says:

    So when is the USMCA supposed to be signed? Anyone know?

    Like

  16. Deplorable_Infidel says:

    “Stay tuned…. this is the fun stuff!”

    You can count on it.

    Like

  17. Kent says:

    …not sure if anyone else has noticed this…or even that I am correct in this observation…

    but….

    PDJT has not attempted, not that I have seen, to punish any of the fellow negotiates for their past transgressions…their taking advantage of weak trade negotiations with the USA…

    He only seeks a level playing field for the American worker….

    As I see it…………………

    Like

    • starfcker says:

      You are correct, Kent. However, changing to a fair system for the American worker is punishment beyond the imagination of most of those foreign bureaucrats. The way globalization has been set up, every country gets their little piece of the pie through whatever mechanism the central banks provide. For example, read the German car summit article Sundance posted today. The EU is a more precarious construct than most people imagine. Like the United States, much of their industry has been shipped to the far east. Take away NINJA car loans and free money student loans here in the United States, and those German car companies won’t be riding nearly as high. They are huge components to Germany’s assigned piece of the pie. And Germany is basically the economic beating heart of the European Union. So it may not come with the word punishment attached, but resetting the global playing field is more than punishment to anybody who’s been running a surplus. (China, Mexico, Germany,)

      Liked by 2 people

  18. jmuniz1 says:

    When is the wall going to get finished.I know our President is having a tough time with both parties just not the Democrat party. We lost the house and we know Ryan is no help. Sundance do you think he can get it done? Ive never seen a President who has done so Much good hated by the dems and most people in his own party. I say shut the Government down until he gets what he wants if not America wll never have a republican President again.

    Like

    • Now that Mexico OWNS the Illegal Invasion … and the economic costs of consequent Trade Shut-Downs if it continues, President Trump will build out the wall at a deliberate pace that’s constrained by American AND Mexican funding.

      Like

    • stablesort says:

      It’s raining now in Tijuana…

      Like

    • Stillwater says:

      I think Trump is going to continue to acquire the wall funding bit by bit, even if he doesn’t get complete funding in one shot. See Bloomberg article below for his recent ask:

      The head of the Senate Appropriations panel says that President Donald Trump is holding firm in his insistence on $5 billion for a border wall in a year-end spending package, a demand that risks blowing up negotiations and triggering a partial government shutdown.

      Committee Chairman Richard Shelby, an Alabama Republican, has been working to find some middle ground between the House version of the spending bill that includes $5 billion for the wall and the $1.6 billion Republicans and Democrats on the Senate panel have proposed.

      Asked whether the $5 billion is a red line in the negotiations, Shelby said, “for the president.”

      https://www.bloomberg.com/news/articles/2018-11-27/trump-demanding-5-billion-border-for-wall-funding-shelby-says

      Liked by 1 person

  19. jmuniz1 says:

    We need wall funding now or close the Government down until we get it.

    Like

    • wanthetruth says:

      2nd off topic question, jmuniz1. ICYMI – “White House / EU Auto Summit Scheduled For December 4th…” is the thread you’re on. Don’t see “wall” in there. Easy to post on wrong thread by mistake, but irritating nonetheless.

      Like

  20. Ghost says:

    Observations from a smaller limb.

    Thought I’d share this report about China.

    “The manufacturing purchasing managers index continued falling, dropping to the 50.0 level which marks the divide between expansion and contraction. New export orders improved slightly, though still contracting for a sixth month, while the non-manufacturing gauge, reflecting activity in the construction and services sectors, worsened to 53.4. “

    Full article at

    https://www.bloombergquint.com/global-economics/china-november-manufacturing-pmi-worsens-amid-trade-war

    Smile!

    Liked by 1 person

  21. Ghost says:

    Observations from a smaller limb.

    Wednesday Fed chairman Powell gave a speech that included commentary that many conclude a softening position on raising interest rates. Central bank chairmen give these speeches to foreshadow central bank plans for the future.

    I bring this up because the European central bank chair, Draghi, was scheduled to speak in Europe at a gathering. He didn’t show up. ??????

    I’ve never seen that happen, there has been no explanation that I have found yet, and I have been searching.

    Like

  22. Gary Lacey says:

    Trump’s hole card, America is the premiere market for automobiles in the world.
    Thanx sundance

    Like

  23. A side note, but potentially relevant for global auto sales/production is the serious issues for NIssan/Renaut.
    This recent article discusses the issues for Macron as well. Seems like Abe’s Japan is trying to shake off the yoke of the French.
    https://www.reuters.com/article/us-nissan-ghosn-renault-macron-insight-idUSKCN1NX1GK

    All of that said, the economics of auto production and the huge capital costs involved do argue for some type of global market. There will be more turmoil ahead in the auto industry, imho, not just because of trade issues but also because of changing consumer tastes (i.e., preference for trucks and SUVs vs. sedans).

    Like

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