The EU warns the US against the repercussions in case of rights on cars First page

MILAN (Reuters) – The European Union warned the US that by imposing duties on automobiles and spare parts, it would hurt its auto industry and provoke likely countermeasures of its trading partners on export badets of 294 billion.

In a 10-page document sent on Friday 29th to the US Department of Commerce, the European Union pointed out that tariffs on automobiles and spare parts are not justifiable.

The Ministry of Commerce launched a May 23 investigation motivated by the protection of national security on the recommendation of President Donald Trump, who repeatedly criticized the EU for its trade surplus in the United States and to have higher taxes on cars imported from abroad. The European Union has a 10% tax, as opposed to US law which stands at 2.5%.

The European Union in 2017 exported 37.4 billion cars to the United States. Cars have moved in the opposite direction, worth 6.2 billion euros.

In the document, the EU pointed out that European companies were producing nearly 2.9 million cars in the United States, now 120,000 jobs (including 420,000 car dealerships and spare parts) ).

The paper also indicates that tariffs on automobiles and components could adversely affect US production by imposing higher costs on US producers. The EU has calculated that a 25% tax would have a negative initial impact on US GDP of $ 13-14 billion without improving the current balance of payments.

Assuming the application of countermeasures in the same manner as those introduced in response to existing US steel and aluminum rights, badets of value $ 294 billion could be affected (19% of US exports), warns the EU.