The United States is preparing a tariff increase on cars and the European Union is preparing a "quick and adequate" response

The US Department of Commerce announced Sunday night that he had delivered to the White House his report on the automotive industryWhat? could trigger an increase in rates on imported vehicles and intensify tensions with Europe, which is already preparing to take action in this regard.

"Secretary of Commerce Wilbur Ross officially handed over to President Donald Trump the results of the Commerce Trade Inquiry into the Effects of Automotive and Parts Imports on US National SecurityThe protectionist policies of the Republican government have opted for the argument of "national security" to advance their idea of ​​imposing tariffs, the portfolio announced without giving further details.

President Trump now has 90 days to decide whether or not to apply additional rates to imports of cars and equipment, posing a threat to this sector in Europe and mainly in Germany.

For its part, the European Union (EU) said Monday that if the US finally imposed tariffs on their cars "the European Commission will react quickly and appropriatelysaid community spokeswoman Margaritis Schinas in Brussels.

The White House announced at the end of May its intention to impose additional customs duties of up to 25% on vehicle imports, to defend the sector.

According to sources consulted by the AFP, the findings of this report would be "positive" on whether the import of vehicles was considered a threat to national security, despite repeated warnings from its allies about the the risks of a trade war with unpredictable consequences.

If the President decided to take similar measures with the cars, the German manufacturers (Mercedes-Benz, Volkswagen and BMW) would be the most affected. In 2017, just over half (8.3 million) of the 17 million vehicles sold in the United States were imported.

The Cars imported from Canada and Mexico they have just concluded a new Free Trade Agreement with the United States (T-MEC) – should be exempted from higher tariffs.

The two countries are responsible for the majority of vehicles imported by the United States (4.27 million) ahead of Japan (21%), Germany (11%) and South Korea (8%). In 2018, German groups exported 470,000 cars to the United States, according to the VDA manufacturers' federation.

According to EY badysts, the 25% tariffs on vehicles would cost about 5 billion euros to German automakers.

The US auto industry has criticized the possible measure, arguing that would affect both the local economy and the global automotive sector.

On Friday, the National Automobile Dealers Association warned that 366,900 jobs could be lost in the United States due to rising car prices. The new rates would increase vehicle costs by $ 2,750 on average, resulting in a decline in sales of 1.3 million units a year, according to the organization.

(With information from AFP)