EU warns Trump’s car tariffs threaten $300 billion of US exports

20% of US exports at risk

Nearly $300 billion of US exports could be hit by retaliatory tariffs if the Trump administration decides to penalize automobile imports from around the world, the European Union says.

The Commission said global retaliation against US tariffs on auto imports would have a much bigger impact on the American economy than the backlash provoked by the Trump administration’s steel and aluminum tariffs this year. It estimated that $294 billion, or around 19% of total US exports last year, could be affected.

President Donald Trump has threatened to place a 20% tariff on all European cars coming to the United States if the European Union doesn’t remove its own trade barriers. In May, the US government launched an investigationinto imports of automobiles, including SUVs, light trucks and auto parts.

The type of investigation, known as Section 232, is meant to determine whether the imports are hurting US national security. It’s the same approach the Trump administration used before it slapped tariffs on steel and aluminum imports earlier this year.

https://www.cnn.com/

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