Trade war

European Union Warns $300 Billion In Retaliatory Measures Against US Auto Tariffs

The European Union estimates that nearly $300 billion of U.S. exports could suffer from retaliatory actions in response to President Trump’s potential tariffs on car parts and automobiles.

The European Commission made the assertion in a formal report to the U.S. Department of Commerce in response to its ongoing Section 232 National Security Investigation of car imports.

Stating that the Department’s examination lacks legitimacy and contradicts international trade law, the Commission wrote, “the EU reiterates its firm opposition to the proliferation of measures taken on supposed national security grounds for the purposes of economic protection.”

Taxing car imports would cut into the U.S. economy deeper than tariffs on aluminum and steel, the EU commented in the letter sent last Friday and made public on Monday. The Union projects a $13 – $14 billion dent in the U.S. GDP if the administration slaps tariffs on foreign cars. Such a measure could prompt trading partners to retaliate, affecting some $294 billion, or approximately 19 percent, of U.S. exports.