Media named Porsche the most vulnerable brand if Trump raises duties

German manufacturer Porsche AG is particularly vulnerable to a possible increase in duties by U.S. President Donald Trump on cars from the European Union (EU). This was reported by Bloomberg on February 8.

In Porsche AG, sales are falling, revenues are declining and top managers are being laid off. For the past 15 years, the German manufacturer has been growing steadily in the United States, but U.S. Porsche dealers are completely dependent on imports, the publication noted.

"If the duties are significantly higher than 10 percent, they (Porshe. - Ed.) will have to consider moving some production to the United States," said Bloomberg Intelligence analyst Michael Dean.

Porsche won't be able to use its parent company Volkswagen AG's only U.S. plant in Tennessee to avoid the duties because none of the brand's models share a common base with SUVs made there.

Porsche Chairman Oliver Blum also won't be able to afford the large investment to move production, the agency said.

Bloomberg Intelligence estimates that if Trump raises duties on cars from the EU from 2.5% to 10%, it would reduce German automakers' revenues by €2.1 billion.

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Trump signed an executive order on Feb. 1 imposing trade tariffs of 25% on goods from Canada, China and Mexico. Then he also promised to impose duties on goods from the EU. With this decision, the American leader seeks to reduce the flow of the opioid fentanyl across the border, as well as the flow of migrants.

Later, on February 3, Danish Prime Minister Mette Frederiksen said that the EU should react strongly if Trump imposes duties on European goods. According to her, everyone should respect the sovereignty of all states.

On the same day, the head of European diplomacy Kaja Kallas said that the EU was preparing for a possible trade war with the United States.