In an official submission by the European Union (EU) to the US Department of Commerce (DOC), the EU has warned the United States (US) that imposing additional import tariffs on cars and car parts would harm the US automotive industry and added that it would impose retaliatory measures on goods from the US worth $294 billion if the duties come into effect, according to Reuters.
Accordingly, the EU document said that the additional tariffs on auto imports would increase costs of US car manufacturers and a 25 percent duty would cause an initial $13-14 billion negative impact on the US economy. In its submission, the EU said that EU companies make close to 2.9 million cars in the US and support 120,000 US jobs.
In May this year, the US DOC started a Section 232 investigation into passenger vehicles and parts and the US officials expect tariffs of up to 25 percent on auto imports.