The European Union warned the United States against introducing tariffs on car imports, claiming such measures would harm America, AFP reported on Monday. In a 10-page letter sent to the US Commerce Department, the EU noted that the US is set to face retaliatory tariffs on $294 billion worth of American goods if it goes ahead with increasing the duties on auto imports.
"An additional import tariff of 25 percent, applied to automobiles and automotive parts, would in first instance have a negative impact on US GDP in the order of 13-14 billion USD, and the current account balance of the US would be not affected positively," the EU told Washington.
US President Donald Trump has threatened to increase auto tariffs to 20%. General Motors warned the US that such a move could reflect badly on the company and result in job cuts, while the Japanese government also urged Washington to reconsider car tariffs, pointing out that they would harm both Japanese companies, as well as American jobs.
