EU Warns US Against Car Tariffs

The European Union has warned the United States that placing tariffs on automobiles would end up hurting the U.S. economy and would probably result in retaliatory measures from its trading partners.

In a letter sent to U.S. Commerce Department Friday, the European Union said tariffs on European cars and car parts were unjustifiable.

U.S. President Donald Trump has proposed imposing a 20 percent duty on EU car imports, citing security concerns. It was not immediately clear what those concerns are.

The EU letter said, “In 2017, U.S.-based EU companies, produced close to 2.9 million automobiles, which accounted for 26 percent of total U.S. production.” The submission said European car companies are “well established” in the United States.

The European car industry in the United States supports some 120,000 jobs in its factories that are mainly in the southern region of the country. A tariffs war could adversely affect those jobs in a region known for its support of the U.S. president.

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