The President of the United States, Donald Trump, says he plans to impose import tariffs on the European Union quite soon. The reason for this is the weak demand for American products on the old continent.
This also affects Finland, as e.g. Tesla is the only American car brand with a significant market share here. Moreover, many of its models are manufactured either in Germany or China.
When it comes to cars, the problem with sales in Finland is not anything other than the weakness of American offerings. American cars are simply too large to fit comfortably into local parking spaces, and they consume far too much fuel.
The latter issue is largely due to the high fuel taxes in EU countries. While a gallon of regular gasoline costs just over three dollars in the U.S., the same amount costs around seven dollars (6.8 euros) in Finland. Additionally, the income level of Finns is about one-third lower than in the U.S., while taxation is significantly higher.
Therefore, the export problems of the U.S. automobile industry will not be solved by imposing tariffs on EU countries but rather by designing cars that are suitable for Finland and Europe in general. However, it remains to be seen whether American companies - and the USA under Trump's leadership - have the necessary willingness to do so.
Previous thoughts on the same topic:
Finland and the USA: Strong Allies with Shared Interests or a Trade Dispute?
Trump’s Tariff Weapon Worked, but Will Finland’s Development Aid Strategy Succeed?
Former President Donald Trump is Also the Upcoming President – But What Does It Mean?
Maybe an American consumer finds a bigger car more comfortable on long distances? With my experience, japanese cars are of good quality except the tin. As of now, my German car is a good tool.
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