Summary
German engine maker Deutz said it will fully pass Trump’s new 20% tariffs on EU imports to American customers through price hikes.
The move underscores warnings that tariffs act as consumer taxes and could raise inflation.
Trump claimed the tariffs as necessary to combat trade imbalances and protect U.S. manufacturing. However, EU officials, including Ursula von der Leyen, pushed for zero-for-zero tariff deals, but Trump rejected them.
The EU plans retaliatory tariffs by mid-April. Economists and officials warn of recession risks and disrupted supply chains.
I don’t understand. If Deutz sells something for $100, and the Americans pay an extra $20 in tariffs to their government for a total of $120, how will Deutz pass this back? Are they going to calculate how much their losses are and add a percentage to the price themselves? Or are they just going to be selling it for $120 themselves instead? (Which would make it cost $144 with tariffs)
Landed price to suppliers will be 20% higher and they will charge accordingly at the end user level.
So it’s just a punishment?
Always was.