Sunday, April 6, 2025

Why No Cadillacs in Germany?

I'm an inveterate car guy.

I breathed, ate and slept them for many years.  So I was very excited to learn I would be sent to Europe to defend your hide from communism.  And socialism.  And Marxism.  And every other "ism."

I was first stationed in Deutchland.  Or Germany as we prefer to call it.  Ahhhh, the land of the Autobahn.  That road that Hitler built, enabling us to drive as fast as our cars can go.  For hundreds of miles.  Top end.  150 mph+.  And miraculously, all the other cars would automatically pull to the side to let us pass.  

Germany.  The land of precision motorsports.  Where cars ran fast, cornered well and stopped on a Deutchmark.  Everywhere one looked was a Porsche.  And a Ferrari.  And a fast Mercedes-Benz.  But wait!  As I looked around, I saw nary a single American car!  We had plenty of VW's and MB-zzz, and even the occasional Porsche back home.  So why, I asked myself, were there no American cars?  We had Corvettes, and Cadillacs, and Mustangs.  Why weren't they being scooped up, especially since they were mucho cheaper than Eurocars?  Here's the answer...

We, America, impose a tariff on incoming cars from Europe of two and one-half percent.  That's it.  Not bad.  No one can bitch about that.  So what does Germany charge on American cars?  Ya' ready?  

     -  First, Germany charges a flat 10% tariff on every 'Murican car.  Four times what we charge.       

     -  But then, it charges an additional 19% "Mehrwertsteur."  Or, "VAT." That stands for "Value Added Tax."  It adds that tax on the retail price of the landed car, let's say $60,000 for a nice mid-range Cadillac.  

     -  Plus it adds all the shipping charges to that VAT, which can equal $2,000 or more.  

     -  Plus it adds in the original 10%, or double-taxes it, which is $6,000.  Plus 19%, or $13,000.    

So that $60,000 American would now cost a German more than $87,000!  Wiping out the built-in savings for choosing American.  Plenty of VW's, and Audi's, and Fiat's, and MB'zzz he could choose instead.  That's why you'll not see an American car on that Autobahn.  And that's why Germany has been hosing us for decades.  Making it impossible for Detroit to sell anything into Frankfurt.

The other Euro countries do the same.  France, and Spain, and Italy, and the U.K. have protectionist import policies on American cars.  Ya' get it?

So now you know why The Donald has chosen to rectify the situation.  By leveling the playing field.  By imposing tariffs on Germany, and 164 other countries, to almost, but not quite, equal the taxes they're imposing on us.  

Last year we had a negative trade imbalance of almost $1,000,000,000,000,000.  With a "T."  To add to our nearly $37 Trillion Dollar National Debt.  And you've been paying it one way or another.  Other countries have been imposing tariffs on us of up to 100%.  Even Canada, 'dem nice, friendly boyz up North, have been tarriffing us to the tune of more than $268 Billion a Year.  

Time to bring this to an end.

Yesterday crowds gathered in nearly even big city to show their displeasure with Trump's economic policy.  As if they understood it.  Get over it.  He has no third term to seek.  His approval ratings are above those of the Democrats.  He has nothing to lose while trying to rectify our untenable situation.  He's been talking about it since the 1980's.  It's a Big Bet.

We're told more than 50 countries have called the White House looking to negotiate their tariffs downward.  I expect that's exactly what The Donald will do.  Bringing calm back to our edgy markets, and calm to the American taxpayer.  

I hope he wins.  For if he wins, we win


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