HELP FOR HEROES

Friday, 27 January 2017

TRUMP'S FIRST EU VICTIM: German car giant loses €100million contract.

A MYSTERY firm has pulled out of a €100million deal with a German car supplier, after new President Donald Trump warned he would punish companies that outsourced jobs from America.



Shares in SHW Automotive plunged as it revealed the lost deal with an unnamed electric car maker - suspected to be US firm Tesla. 

The German company said it did not accept the customer's reasons for the cancellation, which were given as SHW failing to meet requirements for technical specifications.

Media reports in Germany labelled SHW the first victim of the new president's protectionist policies. 

Commentators feared it could be "the beginning of a nightmare for German exporters". 

The American leader has promised to slap a border tax on companies, which assembled goods outside of American and then sold to US customers.
donald trump car taxGETTY
Donald Trump has threatened firms that outsource jobs.

GETTY
Donald Trump has promised to 'put America first' in policies
Days before taking office Mr Trump said he would hit BMWs built at a plant in Mexico and then sold in the US with a levy of 35 per cent. 

Tesla is headed up by Elon Musk, who was appointed as an advisor to Donald Trump in December. 

A deal between the electric carmaker and SHW would have been a direct contradiction of Mr Trump's policies and a potential embarrassment for the new administration. 

SHW said it is now looking at taking legal action to seek damages from the partner.

Naeem Aslam, chief market analyst at Think Markets, said: "Donald Trump's message on this has been very clear; be prepared to produce in America and sell in America, if you don’t, then get ready to pay heavy border taxes. 

"A number of firms have already taken measures to invest more in America."