by Mercedes Proposes Duty-Free Import of Cars from the USA to Europe
Mercedes-Benz has suggested that European legislators could allow the duty-free import of cars from the USA. The company’s CEO, Ola Källenius, believes this could become part of trade agreements between Europe and the USA. He proposed a scheme whereby for every car exported from the USA to Europe, a European manufacturer would also receive the opportunity for duty-free supply of its cars to America.
Källenius noted that Mercedes is actively participating in negotiations, offering various scenarios to improve trade. However, the final decisions remain with the European Union, as it is responsible for trade policy.
“For every car that leaves the USA or Europe, a car from the other side should come in duty-free,” stated Källenius.
Will the Popularity of American Cars Increase in Europe?
American cars have traditionally not been in high demand in Europe. One reason is the high cost of fuel, which makes large US cars less attractive. Furthermore, the dimensions of American cars, especially pickups, are often unsuitable for narrow European roads.
Statistics show a significant trade imbalance: in 2022, over 692 thousand cars were exported from Europe to the USA, while only 116 thousand went in the opposite direction. If duties are abolished, this could change the situation, but will European buyers truly become interested in American models?
The Mercedes proposal could become a compromise in trade negotiations, but it is currently difficult to predict how this will affect the market. European drivers are already accustomed to compact and economical models, so a change in preferences may take time. Moreover, environmental standards in Europe are becoming increasingly strict, which also limits opportunities for large cars from the USA.
