German cars pose no security risks to United States, Merkel says

World
Europe

German cars do not pose a security threat to the United States, German Chancellor Angela Merkel said on Saturday during the Munich Security Conference, in response to U.S. planning to declare European car imports a national security threat.

"We are proud of our cars and so we should be," Merkel said, adding, however, that many were built in the United States and exported to China. "If that is viewed as a security threat to the United States, then we are shocked," she said.

Merkel pointed out that the biggest car plant of German luxury brand BMW was in South Carolina, from where it exports vehicles to China.

A confidential Commerce Department report due to be sent to Donald Trump on Sunday is widely expected to clear the way for the U.S. president to threaten tariffs on imported autos and auto parts by designating the imports a national security threat.

If the U.S. decides imported autos are of national security threat to the country, it may slap up to 25 percent tariffs on imported cars and auto parts, and bring the global auto industry one step closer to its worst trade nightmare. Major car exporters like Japan, the European Union, and South Korea will feel the most pain.

Source(s): Reuters