For V8 enthusiasts with a penchant for making impressive appearances on the drag strip, the Stellantis brand, Dodge, offers two fitting choices: Alongside the four-door sedan Charger, which boasts up to 797 HP, the Americans claim that their two-door Challenger is the fastest and most powerful muscle car in the world, with up to 1025 HP. However, both models are also available in more subdued, yet still very sporty versions.

The Dodge Challenger (front) and Charger, especially in their SRT versions, leave no doubt about their performance capabilities. Photo: Manufacturer

Dodge Challenger and Dodge Charger: Tailored for the young America of the 1960s

The names Charger and Challenger first appeared in Dodge's price list during the wild 1960s. The Ford Mustang had created an entirely new market segment for young buyers since 1964, and the parent company, Chrysler, wanted a piece of the pie with these two new designs – just like GM with the Pontiac Firebird or the Chevrolet Camaro. Initially, the concept was successful, but by the 1980s, it seemed the era for the products of the Flower Power generation had passed: The Challenger disappeared from the lineup in 1983, followed by the Charger four years later.

The return of the two legends with the help of Mercedes-Benz

It took almost 20 years before the Dodge Charger could celebrate its comeback in 2005. The technical foundation for the rear-wheel-drive four-door came from the Chrysler LX platform, which in turn was based on numerous technical solutions from Mercedes-Benz's toolkit. At that time, Dodge was part of the DaimlerChrysler conglomerate – hence, there was ample developmental assistance from Stuttgart. For the two-door coupe Challenger, introduced in early 2008, developers utilized the modified and shortened LX platform named LC. The basic concept of these two technically closely related vehicles has changed little since then.

Five seats in both the Charger and Challenger

With its four doors and five seats, the Charger, depending on the version, measures up to 5.11 meters in length, presenting itself as a sports sedan that offers space for the whole family plus luggage. Things are a bit tighter in the Challenger, even though the coupe, with a total length of 5.03 meters, almost matches the sister model. However, the two-door has a 102 millimeter shorter wheelbase compared to the Charger, leading to significantly less legroom in the back seats.

Quality craftsmanship and numerous equipment options

Even in the Dodge Challenger, three passengers can fit in the back seat, but getting in requires some agility. Thanks to the four doors, passengers in the Charger have a much easier time with this task. While the spatial economy of both models generally earns mediocre grades, the quality of the interior workmanship, as well as the lavish equipment with countless options, regularly receive praise from testers.

Classic interior design with an integrated central monitor and intuitive controls. Photo: Manufacturer

V6 and V8 engines across various models

Beyond the striking appearance, it's primarily the drive that contributes significantly to the unique allure of these two cars. With the Charger and Challenger, the top-tier engines, such as the 6.2-liter V8 supercharger, which in certain models delivers up to 797 HP in the Charger and up to 1025 HP in the Challenger, solidify their status as muscle car icons. However, Dodge offers a broad range of engines for both models. The base engine is a 3.6-liter V6, which in the Charger delivers between 292 and 300 HP, and in the Challenger, 305 HP. Additionally, there's the 5.7-liter HEMI V8 with 370 HP in the Charger and 375 HP in the Challenger, as well as the 6.4-liter HEMI V8, producing 485 HP in both models.

Distinct differences in rear design. Dodge Challenger with a pronounced curve towards the rear, larger trunk access, and elongated lines in the four-door Dodge Charger. Photo: Manufacturer

Diverse drive options and transmission variants

The variety of drive options continues with the transmission variants. While the Charger is exclusively equipped with an eight-speed automatic, the Challenger offers both the eight-speed automatic and a six-speed manual transmission in certain models. This provides customers with the opportunity to tailor their driving experience to their individual preferences.

Exciting models at affordable starting prices

In the US market, Dodge offers the Challenger starting at $30,825, while the base price for the Charger is $32,500. Not a lot of money for cars that, with their high-capacity engines, stand for both driving pleasure and a unique lifestyle. However, the end of this era is also looming for Dodge, as from 2024, the brand plans to introduce an electric muscle car.

In our magazine, we take a look at the latest muscle cars in top form and compare the Dodge Challenger SRT Hellcat Redeye with the Demon 170.

Convertible owners have every reason to rejoice when the sun shows its face in spring and the folding roof can finally be opened after a long winter break. Often, the convertible remains in the garage over the winter months, leaving noticeable marks on the fabric roof. To ensure that the convertible top shines again and remains beautiful and especially watertight in the coming years, car owners should not neglect the important care of the convertible top. USCar-Trader.com reveals what matters!

Car wash is possible, but hand washing is better

Generally, visiting a car wash with a modern convertible is no problem. The material, whether fabric top or hardtop, is not damaged by the soft brushes and cleaning agents. However, the use of hot wax should be avoided as the wax settles in the pores of the fabric, resulting in unsightly white streaks.

Depending on the car wash, there are even special cleaning programs for convertibles, where the brushes move over the car with less pressure. However, this option is rare and can only be found in large car washes. Those driving a classic, like Mercedes SL R129 or BMW Z3, should avoid car washes. Hand washing is much gentler on the convertible and therefore better suited. Car owners can decide how intensive the cleaning should be and which care products are really necessary.

Important basic rule: A high-pressure cleaner can damage the fabric roof! Therefore, it should not be used for cleaning the convertible top. Instead, it's sufficient to first remove coarse dirt with a soft brush. Alternatively, a sponge can also be used, always rubbing in the direction of the fabric structure to avoid leaving marks on the material.

Beware, avoid aggressive cleaning agents!

Light dirt, pollen, or sand can be removed with a dry brush. If necessary, some cold, clear water can help with cleaning afterwards. Only if stains remain on the convertible top after this process is it advisable to use a cleaning agent.

However, it is essential to ensure that it is a special top cleaner that is gentle on materials and acid-free. Aggressive chemicals can attack and damage the material. As a result, the fabric roof fades, becomes spotty, or even cracks.

Even if it's a special care product, it doesn't hurt to test the product in an inconspicuous place. Each fabric roof has its peculiarities, so damage can never be completely ruled out. At the same time, the effectiveness of the cleaning agent can never be guaranteed.

In any case, the manufacturer's usage instructions should be read and followed to carry out the cleaning as effectively and consequence-free as possible. The use of general stain removers, commonly used in households, should be strictly avoided.

An impregnation protects against dirt

After cleaning, it is advisable to apply a special impregnation to protect the convertible top from new dirt. The material should first dry completely to ensure the best possible adhesion of the impregnation. It is generally important to let the convertible top dry after each cleaning and rain in the closed state to prevent mold or mildew stains. Also, odors in the vehicle can be prevented this way.

It is advisable to choose an impregnation with UV protection, which also protects against fading from sunlight. A convertible top has many rubber seals that absolutely need to be cared for. Special care products based on silicone are suitable for this. This prevents the rubber from becoming brittle or cracked over the years, making it leaky.

Depending on the convertible model, there is a plastic window in the rear part of the top, which also shows signs of wear over time. The material usually becomes cloudy, brittle, or scratchy, which not only affects the optics but also safety. Unfortunately, replacing the plastic windows is not easy, so it's better to focus on early care.

What matters in top care

• Remove dirt as soon as possible
• Avoid car wash, perform hand wash
• Remove light dirt with a soft brush
• If necessary: use as little cold water as possible
• Aggressive cleaning agents only in an emergency!
• Thoroughly dry the top after cleaning
• An impregnation protects against new dirt
• Don't forget seals, frame & windows

A hardtop makes convertible care easier

Owners of a convertible with a hardtop, i.e., a steel roof painted in the car color, have significantly less work. Visiting the car wash is no problem, and there are usually no differences compared to a classic coupe. If necessary, even polishing the paint is possible to achieve a radiant shine.

However, even owners of a convertible with a steel roof cannot avoid caring for the mechanics. The frame is usually more complex and more robust because a steel roof has a much higher weight than a light fabric roof. Regular lubrication is recommended, but the manufacturer's specifications must be strictly adhered to. A look at the corresponding convertible manual provides information about the need for care.

The convertible top frame as a necessary basis

The convertible top frame has a significant influence on the functionality and tightness of the convertible top, so the care and inspection of the mechanics should not be forgotten. In the first step, the frame should be cleaned of dust and dirt with a soft cloth. The convertible top box should also be cleaned, as leaves and other dirt usually accumulate here.

If necessary, the joints should be greased. The correct procedure can be found

The Mercedes SL R129 is among those vehicles on the fast track to becoming a classic and achieving old-timer status. Currently, the car is relatively affordable. That's likely to change once the roadster becomes a true rarity.

What does SL mean at Mercedes?

Between 1989 and 2001, Mercedes-Benz built the two-seater sports car as part of its SL-Class. About 200,000 units were launched in various versions during this period. The SL-Class stands for "Sport Light" vehicles at the Stuttgart-based carmakers, typically comprising roadsters and, to some extent, coupes.

Where was the R129 built?

The Mercedes SL R129 succeeded the R107 series in 1989 and was replaced by the R230 series in 2001. In the 12 years of its production, approximately 205,000 units were produced at the Bremen site. Today, around 33,000 vehicles are still registered in Germany.

Long development history - three model revisions until 2001

The Mercedes SL R129 has a rather long history. Development of the vehicle began in the mid-1970s. However, the project was initially put on hold as other models fully utilized the automaker's development capacity.

It was not until 1982 that attention returned to the new roadster. The design was finalized in 1984. The drive technology primarily relied on the engines of the Mercedes-Benz S-Class produced in parallel - six, eight, and twelve cylinders. In 1992, the first twelve-cylinder model was offered. Later, the more modern V6 and V8 engines of the S-Class were added.

Early models were still designated SL at the rear, such as the 500 SL. From 1993, with the introduction of Mercedes' class designations, the SL was moved to the front.

Individual numbers were assigned for each model variant. For example, from the R129 series, one can find a Mercedes SL 600, SL 500, SL 320, 300 SL-24, 300 SL, SL 280, etc. At first glance, this might seem a bit confusing. The roadster was revised three times during model maintenance:

1. For IAA 1995 in Frankfurt am Main, a new 5-speed automatic transmission was introduced for the SL 500 and SL 600 models, along with a modified V12 and 5.0 L V8 engine. An Electronic Stability Program (ESP) was also available for the first time. The most noticeable external changes were the newly designed front and rear bumpers, as well as the optional aluminum hardtop with glass roof and sun blind;

2. For the Turin Motor Show in 1998, the second revision was made. Here, the cars were introduced with new V6 and V8 engines with three-valve technology. A revised and larger braking system was installed on the front axle. New oval exhaust pipes, as well as redesigned exterior mirrors and tail lights, were the most significant visual changes.

3. The last model revision concerned only details for vehicles built from 2000 onwards.

Now a museum piece - Lady Di's Mercedes SL R129

The SL R129 models were not "bargains" even in their time. Depending on the model version and market launch, the price started at around 100,000 DM in the basic configuration and could climb to over 200,000 DM for certain versions. By today's standards, these are no "small matters."

Nonetheless, the first models were highly sought after and buyers had to wait up to seven years for delivery. Among the notable owners was Lady Diana. In 1991, the then-wife of the British heir apparent received a glossy red Mercedes-Benz 500 SL.

She was the first member of the British royal family to own a foreign car in her private possession - a scandal! After criticism from the government, unions, and industry, the princess returned the roadster in September 1992. Today, it can be admired at the Mercedes-Benz Museum in Stuttgart.

If you now decide to buy a used Mercedes SL R129, you won't have to dig as deep into your wallet as before. Moderately preserved examples are available for under 10,000 euros. For one in better condition, you might have to invest over 20,000 euros at the peak. An appreciation in value, once old-timer status is achieved, is anything but excluded.

Perhaps even importing from the USA might pay off. In our exchange for American used cars, you're sure to find a Mercedes SL R129 or two. Well-preserved - and especially at a good price. We offer you the highest safety and quality standards (for example, through the AutoCheck service when buying/importing US cars and ensure hassle-free transport and complete handling of direct imports!

 

In Europe, the principle for price indications is that they must be final prices. Therefore, the stated amount includes the sales tax - often separately itemized - and other costs associated with a purchase. This naturally applies to car purchases as well.

This is not the case in the USA. Here, additional amounts are added to the stated price for vehicles, which are often only specified when the buyer and dealer have agreed and a contract is signed. For German buyers purchasing a vehicle in the United States, the so-called documentation fee is particularly relevant. In addition, dealers charge their customers fees for US registration and sales tax. There are also other fees, but these are not consistently applied.

Varying Prices from State to State

A documentation fee is completely unknown in Germany. This fee is intended to cover the back-office costs of the car dealer. The paperwork involved in selling new or used cars requires a lot of work and effort. This is often handled by dedicated employees or the sales staff has to devote a significant part of their working time to it.

The calculation of the documentation fee is a standard practice across the US. Some car dealers are negotiable on the amount, many are not. It is not even mandatory for the fee to be explicitly mentioned in the invoice. Many dealers tend to not itemize the documentation fee separately, but rather combine it with other "additional costs" of the purchase into one item. A reason why many US car buyers pay little attention to the documentation fee, although the costs can be quite noticeable.

The amount of the documentation fee varies from state to state. The range is from a low of $55 to a high of $607. In 35 states, there are no legal limits to the fee, creating "room for maneuver" from the dealer's perspective. Sometimes the fees are calculated as a percentage of the agreed purchase price, and sometimes fixed amounts are applied. Only in one state - Alaska - must the fee be included in the car price; in all other states, it is calculated additionally.

The most expensive states in this regard are currently Florida (average $607), followed by Colorado ($508) and Georgia ($502). At the other end of the scale is California with an average of $55. The table listed here shows the current average values for all US states.

Consideration in Calculation

Consequence: two identical vehicles in terms of equipment, age, and condition, offered in Florida and California for $20,000 each, do not cost the same. In California, the car is on average about $550 cheaper. Of course, this is an isolated view, with other possible cost differences - such as transportation costs - not taken into account. However, German buyers should be aware that the documentation fee needs to be considered in their calculations.

Average Dealer Fees by State

Every used car purchase often resembles the famous "buying a pig in a poke". It remains unclear if the vehicle truly lives up to its promises. Naturally, the seller is inclined to present the car in the best light to achieve a high price, often concealing any defects. This risk is particularly present when importing used cars from the USA, where the great distance and time difference pose additional challenges.

Risk Minimization: The Importance of a Reliable Vehicle History

A comprehensive review of vehicle history is essential to minimize the risk of a bad purchase. USCar Trader offers in collaboration with our partner a detailed query of vehicle history. This is an excellent Carfax alternative, enabling a detailed overview of the history of vehicles originating from the USA. This way, buyers can verify the reliability of seller information before purchase.

ClearVIN - A Carfax Alternative

ClearVIN utilizes extensive databases and is an effective Carfax alternative. It draws information from US-State Departments of Motor Vehicles (DMV), car manufacturers, dealers, leasing companies, salvage companies, and insurers. These diverse data sources allow for an almost seamless reconstruction of the vehicle history, largely independent of the previous owner's statements.

The Report: More Than Just History

The report provided by ClearVIN is comprehensive and covers all aspects of the vehicle history. This includes not only basic information but also details about all known issues and events in the vehicle's past. The included scoring system, based on mathematical-statistical methods, evaluates the condition of the vehicle and thus provides an objective basis for the purchasing decision. This report is available online for a fee and offers a transparent overview for buyers.

Conclusion: Why a History Report is So Valuable

A comprehensive history report can significantly reduce the risk of a used car purchase. It provides a solid foundation for evaluating the vehicle but does not replace personal inspection. Undetected damages or unofficial repairs that have not been documented remain a challenge. A personal vehicle inspection in the USA and Canada before purchase, offered through USCar Trader, can minimize this residual risk.

ClearVIN - Your Reliable Alternative to Carfax

ClearVIN is a reliable Carfax alternative, distinguished by its comprehensive and precise information. It provides access to data from leading sources and experts in the automotive industry, including NMVTIS, NVS, NHTSA, J.D. Power, Black Book, and others. With ClearVIN, buyers receive a comprehensive and trustworthy insight into vehicle history, enabling a well-informed purchasing decision.

The corona crisis has made it possible for vehicle imports from outside the EU, a lower sales tax, which applies starting from July 1st. This general reduction of the VAT is part of the 130 billion euro economic stimulus package of the German government which also includes import sales tax.

This makes car imports cheaper for end consumers. The standard tax rate will fall from 19% to 16%, the reduced tax rate - interesting for classic car imports - from 7% to 5%. It is important to note that the tax reduction is limited until the end of the year 2020. Until then, the import must be completed. It is therefore worth considering buying a car in another EU country - or within the USA and Canada - in the second half of the year and fulfilling a long-cherished car dream. You save money!

The Chevrolet Corvette - or Corvette for short - has been around since 1953. The elegant sports car has been popular from the very beginning and has thrilled more than 1.5 million Corvette fans in its eight editions to date. GM has always been able to adapt the design and equipment to the tastes and wishes of its customers. Thus the Corvette has remained a successful model to this day. This is probably also true for the Corvette C8, the eighth generation of the sporty racer.

Production was originally scheduled to start in the fall of 2019, but a strike at GM's Bowling Green plant in Kentucky delayed the start of construction. Production only started in February of this year. It is likely to be some time before the Corvette will be on sale in our stores, as the official market launch in Germany can be expected in 2021 at the earliest. Those who want to enjoy the car before then will have to buy directly in the USA, and then import their Corvette C8 here, making this to be interesting in terms of price. But, we'll discuss this more later.

Even sleeker, even sportier - the "new" Chevrolet Corvette C8

The vehicle is powered by a 6.2-litre V8 engine with 495 hp and 637 Nm. An eight-speed dual-clutch transmission, developed by General Motors together with Tremec, ensures that the car runs smoothly. Three equipment lines are planned for the Corvette C8: 1LT, 2LT and 3LT. Standard features on all models include: an electrically adjustable steering wheel, a 12-inch diagonal display as a combination instrument, an 8-inch touch-sensitive screen for the infotainment system, and dual-zone automatic climate control. The 2LT and 3LT lines will be equipped with additional features. The Corvette C8 has two luggage stowage areas - one in the front and one in the back - because of the mid-engine. This will not allow for large transports, but that's not what the Corvette C8 is designed for.

A total of 12 colours are offered for the body. Although the Corvette C8 is still brand new on the market in the USA, there are already reports about a possible facelift. Among other things, additional paint colors with the designations "Red Mist Tintcoat" and "Blade Silver" will be available soon. Rally stripes in various colours will provide an even sportier look. Also intended for a particularly sleek exterior: fairings made of visible carbon for the air intakes behind the doors and visible carbon rear wings. In the interior, GM will possibly offer two new two-tone seat covers: suede in yellow-grey and a leather version in black-grey. Infotainment is now also to support the wireless coupling of iPhones via Apple CarPlay.

Earlier, faster, cheaper - that's why it's worth importing

These new features will probably be available within the U.S. in September, and in our country, only immediately with the market launch in the course of 2021. Those who don't want to wait, can already purchase their Corvette C8 directly "on site". In the USA, the car is offered for around 60,000 dollars (converted to approx. 55,600 Euros). When the Corvette C8 comes on the market here, the price should be around 100,000 Euros. So it is worth thinking about importing it, even if you consider the costs for transport and import. As a partner with many years of experience in importing US vehicles, we are happy to help you!

Photo: Chevrolet

In Germany, the VW Jetta could never quite match the success of the other VW models. The situation on the North American market is quite different. Here the Jetta is still the most popular vehicle of European origin, and has earned itself a good reputation of a sporty sedan.

Since spring 2018, the Jetta VII, the latest VW Jetta has been on the market in North America. It was first presented at the North American International Auto Show in Detroit, MI in January 2018, and sales started in the middle of the year, built within the VW plant in Puebla, Mexico. VW did one better though and presented the Jetta GLI as a sporty version at the Chicago Auto Show in early 2019. This version has been sold in the USA for a good year now.

Compact car with attractive price-performance ratio - VW Jetta

The VW Jetta VII is unfortunately not offered within Europe, and if you must have it, you have to import it. Under certain conditions though, this can be quite worthwhile as the Jetta of the latest generation impresses with a favourable price-performance ratio. Similar to it's predecessor variants, the VW Jetta VII is a typical representative of the compact class. This is also reflected in the dimensions, with a length of 4.7 metres, 1.8 metres wide and 1.47 metres high, as the car fits in well with our road conditions.

A big plus is the generous amount of space in relation to the size of the car. With a wheelbase of 2.69 meters, there is no feeling of tightness inside and is sufficient in legroom. The trunk offers 400 litres of storage space, enough for the luggage of a family on holiday. Not to mention, the interior has a solid finish and meets common demands without being too extravagant. Those who are looking for sophisticated elegance will probably be less enthusiastic about the VW Jetta VII. But on the other hand, if you are looking for functionality, you are well served!

In the "normal version", the VW Jetta VII is powered by a 1.4 litre petrol engine with 110 kW (150 PS), with the maximum torque being 250 Nm. The vehicle is normally offered with a 6-speed manual transmission, but higher equipment versions have an 8-speed automatic transmission. In the "sporty" Jetta GLI, the two-litre petrol engine similar to the Golf VII GTI powers the car with 169 kW (230 PS). A 6-speed manual transmission is also provided as standard, as well as a 7-speed dual-clutch transmission available as an option.

Import most lucrative for recently used cars

The list price for the VW Jetta VII starts at 22,500 US dollars. At US dealerships, you can find offers up to 1,000 dollars below that. That is cheap for a vehicle in this class - compared to the German price level.Though the costs for the import are not included, such as transport to the next major port, shipping, customs clearance and import sales tax. You can get a total price around 30.000 Euro. There is another alternative though!

Importing used jettas can be worthwhile for those who have only a few kilometers to go. Here, a purchase is possible with a total budget of 23,000 euros - import costs included. A car of comparable size and equipment at this price - that's what you have to look forward to with us! Good to know when importing, is that you can rely on our expertise as a long-standing importer of US vehicles.

Photo: Volkswagen

The VW Atlas is a five-seater, all-terrain sedan produced at the VW plant in Chattanooga, Tennessee; for the North American market. In Russia, the Middle East, China, and Mexico, the vehicle runs as the VW Teramont. With the VW Atlas Cross Sport, Volkswagen has launched a somewhat "slimmed-down" version which, with its slightly smaller dimensions, is also ideally suited to our domestic roads.

Differences between the "original version" and the Cross Sport variant are largely limited to "looks". With a length of 4.95 meters and a width of 1.99 meters, the VW Atlas Cross Sport is missing only a few millimetres compared to the VW Atlas. The exterior height is also somewhat lower. Nevertheless, the dimensions remain impressive - especially if you compare them with our usual vehicles. In terms of shape, the hatchback stands out in comparison to the Atlas pure version. The seven-seater becomes a five-seater - with plenty of space and seating comfort "in the 2nd row". Also, if the rear seat is folded down, a loading area of around 2,200 litres capacity spreads out. A lot can be stowed away here!

Generosity is the key

The technology is practically identical. Like the VW Atlas, the VW Atlas Cross Sport has two engine versions, buyers can choose between a (TSI) four-cylinder petrol engine (235 PS output) or a VR six-cylinder petrol engine (276 PS output). There is also a choice in terms of drive: front-wheel drive or four-wheel drive. The interior equipment is functional and without exaggerated luxury, but still appears generously proportioned. What is striking is the comparison to cars from domestic production: due to the larger mass, there is no feeling of confinement, even when fully occupied. Every passenger has enough legroom and freedom of movement - in the front and in the back.

For European car buyers, it might take some getting used to, as there are no extras for the VW Atlas Cross Sport. The vehicle is offered in a total of eight equipment lines, and the buyer must decide which one is best for them. Each equipment line includes a certain spectrum of functionalities. Those who value certain functions, such as parking assistant or digital cockpit, must choose the appropriate equipment line and then, if necessary, accept features that are less in the personal focus.

Inexpensive to have - Import from the US or Canada

The price of the VW Atlas Cross Sport ranges from 30,545 US dollars (entry-level version) to 49,765 US dollars (VR6 engine, four-wheel drive, full equipment), depending on the drive and equipment. Converted into euros (exchange rate 1.125 US dollars/euro), this results in a price range from around 27,150 euros to approx. 44,250 euros. So all in all, a strong vehicle with big interior, a lot of comfort, and a favourable price compared to cars of this class that we offer.

At a normal German VW dealer, you will only yearn when it comes to the VW Atlas Cross Sport. The vehicle is officially intended for the North American market and is only offered there. Good thing that there is the possibility to import cars from the USA. For this, you are exactly at the right place with us. We carry out the import for you at attractive conditions and support you in the purchase - from the conclusion of the sales contract to the delivery of the vehicle directly to your door.

Photo: Volkswagen

One thing you can't blame Donald Trump for - that he doesn't keep his promises from the US election campaign. All those who had relied on moderation and a "natural grinding down process" in office have been proven wrong. On hardly any other point is this more evident than in Trump's trade policy. Barely a week has gone by without new headlines in the international trade dispute since the US President initiated the first punitive tariffs in February. Car imports and exports from Europe to the USA and vice versa are, so to speak, in the middle of the action.

The German car industry has a bad feeling about it, at least since Donald Trump declared in April during the visit of French President Macron, that he would continue his trade policy until no Mercedes could be seen on New York's Fifth Avenue. At the same time as Macron's visit, an inspection order was issued to the US Department of Commerce to check whether vehicle imports threatened US national security. If the results of the check were positive, the US president would have the power to impose punitive duties on cars almost single-handedly.

Customs policy and protectionism - not only by Donald Trump

Only a few days ago, Donald Trump repeated his threat of punitive duties on European cars. In one of his infamous Twitter messages, he waved a 20% penalty on car imports from the EU in response to the European customs sanctions on some US products, which in turn were in response to US punitive tariffs on steel and aluminium from Europe. This is what an escalation spiral looks like.

[Tweet from Donald Trump]

Based on the Tariffs and Trade Barriers long placed on the U.S. and it's great companies and workers by the European Union, if these Tariffs and Barriers are not soon broken down and removed, we will be placing a 20% tariff on all of their cars coming into the U.S. Build them here!

- Donald J. Trump (@realDonaldTrump) June 22, 2018]

Should the punitive tariffs become reality - whether 20 percent or 25 percent, as already been read - this would be a severe blow to the German automotive industry. Last year, Germany exported vehicles worth 22 billion euros to the USA. A total of 1.35 million vehicles from German production were sold in the United States in 2017. However, the majority of these were produced in their own factories in the USA - where punitive tariffs would probably not apply. But around 493,000 vehicles came across the Atlantic to the United States, and some manufacturers such as Porsche or Audi are even 100 percent dependent on this route as they have no US production facilities. Penalty duties would make car imports significantly more expensive and have a negative impact on sales - an effect Trump wanted.

Despite all the criticism of the US President's approach and justified doubts as to whether protectionism can even be effective - customs policy is by no means an invention of Donald Trump. The EU has always been a master in controlling trade flows via customs duties. There are also remarkable "inconsistencies" - especially when it comes to car trade with the United States. For passenger cars, the EU levies an import duty of 10 percent on US car imports, while in the opposite direction, the duty is currently only 2.5 percent. The "customs balance" is more balanced for many pick-ups and light trucks. Here, the EU demands 22 percent for US imports of certain pick-ups, while the US demands 25 percent for vehicle imports from Europe.

Incidentally, the 25 percent rule has a history. In 1963, the then EEC had imposed punitive tariffs on chicken meat imports from the USA. The Americans retaliated with higher customs duties - including on flatbed trucks and light trucks from Europe. The import duty here was raised from 8.5 percent to 25 percent. This hit the VW Bulli, which was very popular in the USA at the time, particularly hard. The dispute cost Volkswagen an estimated 50 million D-Marks. The customs tariff still applies. The "chicken war" could even be considered a blueprint for new US punitive duties on vehicles. It is probably no coincidence that a 25 percent rate is again being discussed. Trump has the argument on his side in the case of car tariffs, that the EU has so far burdened US car imports more than vice versa.

TTIP would have been a chance

But it is not only customs duties that hinder free car trade across the Atlantic. US car imports to Germany are subject to an additional 19 percent import turnover tax, because the tax is also levied on the customs duty. But these are by no means the only import costs. Not to forget, that these are not inconsiderable costs for technical conversion, such as tests, expert opinions, proof, permits, etc. for the operation of US vehicles on German roads, and can easily add up to around several thousand Euros. It remains to be seen whether the extensive regulations for conversion, operation and approval are exclusively factually justified or whether the intention behind them was also not to create non-tariff trade barriers. One thing is certain though: US car imports to Europe already present hurdles that not need be necessary.

The Transatlantic Trade and Investment Partnership (TTIP) would have offered an opportunity to remove such obstacles. With the establishment of a free trade area between the US and the EU, tariff and non-tariff trade barriers on both sides would have been removed in the long term, and would have opened up completely new prospects for car imports from the US. The history of TTIP is well known. The negotiations were launched in 2013, and by October 2016, no decisive breakthrough to an agreement had been achieved, while at the same time, resistance to TTIP was spreading in many EU countries. With the election of Donald Trump as the new US President, further negotiations became obsolete. Since then, TTIP has officially been on ice. Many even believe that the agreement is dead for good. Today, some would be grateful for such free trade agreements.

Soon EU punitive duties on US car imports?

How can things go on now? If Donald Trump makes good on his threat and actually imposes punitive tariffs on car imports from Europe, the EU is likely to respond with countermeasures again. Then car imports from the USA could also be burdened with higher duties. The acquisition costs for popular models such as the Chevrolet Corvette, Camaro, Dodge Charger or Ford Mustang could then rise noticeably - by ten percent or more, depending on the penalty duty chosen. Real US car fans will certainly not be frightened by this either, but the penalty duties would be painful.

But, this would not mean more than a pinprick for US foreign trade. Last year in Germany, just over 19,000 imported vehicles from the USA were registered. Vehicles from US production have a negligible market share of 0.6 percent in this country. This contrasts with the almost 500,000 cars from German production, which are heading in the opposite direction. This is where the German trade surplus with the United States is particularly noticeable.

It remains to be seen whether there will actually be a further escalation. It is difficult to assess the actions of the US president - as well as the European reactions to them. In this respect, much is currently speculation. It would be wrong, however, to see Trump's announcements and threats exclusively as "momentary inspirations". There is already a deliberate policy behind them. The fact that Trump is determined and has no consideration for others, should have become clear since the last G7 summit.

Rising dollar makes US car imports even more expensive

In addition to the discussion about punitive tariffs, the dollar has gained significantly in recent months, while the euro is weakening. Compared to the beginning of the year, it has lost 2.7 percent against the dollar, and even 6.6 percent against the euro from its high in February, when the euro was just over 1.25 euros, and as a result, US car imports have become more expensive. The strength of the dollar is primarily due to the flourishing US economy and rising interest rates in the United States. In Europe, on the other hand, interest rates remain at zero and uncertainty is growing. Against this background, the euro could become even weaker. Therefore, now would be a good opportunity for US car imports, before the dollar becomes even stronger and punitive tariffs are possibly added on top. The issue of free trade between Europe and the USA will probably only come up again in the post-trump era.