On Thursday, President Trump indicated no maker of luxury goods is safe from trade wars with the threat of a 200% tariff on European wine, champagne, and alcohol.
As Yahoo Finance’s Pras Subramanian reports, European automakers could be the next target. Here’s what they had to say on increased tariff risks:
Ferrari (RACE): We’re managing various scenarios
“We are ready with some countermeasures,” Ferrari CEO Benedetto Vigna said at CNBC’s Converge Live event in Singapore on Thursday morning. “We are in a scenario planning phase to manage as best whatever will happen.”
Porsche (POAHY): If tariffs go into effect, expect prices to increase
“When the subject [of tariffs] becomes concrete, we will assess which price options there are to pass on to consumers,” Porsche CFO Jochen Breckner said Wednesday, indicating its customers will be paying for Trump’s tariffs, not the company. “We have a very, very strong brand, a great customer base, a loyal customer base, and great product. So in the first place, we would look into additional pricing.”
BMW (BMW.DE): We’ll protect prices for a couple of months, then “reassess”
BMW, which has a major plant in Mexico, is taking a different tack, telling dealers it will absorb the costs of new tariffs on imports from Mexico and “price protect” those vehicles until May 1, according to the Wall Street Journal. But if the tariff situation remains for longer, the company may need to “reassess” that policy.
Volkswagen (VWAGY): Adding US production isn’t ‘realistic’ right now
Volkswagen Brand CEO Thomas Schäfer said shifting production from Mexico, where the popular Tiguan SUV is made, to the US is “not realistic” in the short term, according to Reuters. “For now, we are watching the situation and doing back-up plans for long-term solutions,” Schäfer said.
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