EU warns of reduced imports if Trump puts tariffs on cars

EU warns Donald Trump against auto tariffs, says retaliation would be 'swift'

"We urge the [Trump] Administration to not impose auto tariffs but rather, improve our national economic security by concluding trade pacts with key partners such as the E.U., Japan, and the United Kingdom, and exploring additional market access opportunities for USA auto exports", AAM said in a February 14 statement.

Two people familiar with the matter earlier told AFP that the Commerce Department report has concluded that auto imports pose such a threat.

The U.S. Commerce Department on Sunday submitted a report to the White House on whether to impose tariffs on imported cars and auto parts on national security grounds, drawing backlash from auto makers, suppliers, and industry groups.

The department launched the Section 232 investigation in May 2018 at the president's request, with the goal of evaluating the effects of imports on national security.

"Such actions would weaken our nation's economy by harming USA manufacturers of vehicles and vehicle parts, and would deter US investments in new innovative technologies", it said.

Auto industry officials said they expect the report to recommend at least some tariffs so that the administration can use the findings of the inquiry as negotiating leverage during negotiations this year with Japan and the EU. Trump has previously floated the idea of a 25 per cent tax on imported vehicles.

The United States are Germany's most important single export destination after the bloc of European Union countries.

At the July meeting, "we agreed that both the European Union and the USA would refrain from taking any measures that would go against the spirit and the letter of the joint statement", Schinas said.

Although no details have been leaked from the report, it is expected that President Trump now has 90 days to decide about imposing tariffs, making the decision to be due around 18 May.

The Korean business community looks forward to the strong leadership of the US Congress on this bill for free trade, it said.

"If that is viewed as a security threat to the United States, then we are shocked", she told a conference in Munich at the weekend.

Americans planning to buy a vehicle this year may have to contend with pricier wheels. "If these cars - which are no less a threat than those built in Bavaria - are suddenly a national security threat to the USA, then that's a shock to us".

Along with the other sectors, the spirits industry has also joined the expanding chorus of several businesses that are trying to convince Trump to cut down the tariffs over the Chinese goods along with the foreign metal by considering the pain which the trade battle has inflicted. "Tariffs on autos and auto parts would affect every make and model sold in the USA and would result in higher prices for all vehicles", it said in a statement.

The Peterson Institute for International Economics, a Washington-based nonprofit research institution, warned last year that 195,000 U.S workers could lose their jobs over a 1- to 3-year period, or possibly longer, if Trump slaps tariffs on all imports of automobiles and auto parts.

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