A leading EU car industry association on Tuesday expressed “grave concern” at potential U.S. tariffs on automotive imports, warning that they would hurt manufacturers on both sides of the Atlantic.
The comments came days after the U.S. Department of Commerce submitted its assessment to President Donald Trump on whether importing cars and parts is affecting national security.
The report, whose findings have not yet been made public, could form the basis for Trump to increase import duties for automotive goods entering the U.S., a move he has long threatened.
“Additional tariffs on imported cars and car parts would cause a significant increase in costs for domestic and international car manufacturers in the U.S.,’’ the European Automobile Manufacturers’ Association (ACEA) warned in a statement.
“This would hit U.S. consumers in their pockets and have a counter-productive effect on the U.S. industry,’’ the group said.
They noted that car-makers would have to lower their profit margins, reduce production costs or increase prices for cars and repairs.
According to ACEA chief Erik Jonnaert, imports of cars and auto parts from the EU clearly do not pose a national security risk to the U.S.
“Any trade restrictive measures in our sector will have a serious negative impact, not only on EU manufacturers but also on U.S. manufacturers,’’ Jonnaert added.
According to ACEA, EU car manufacturers produce almost 1 million vehicles in the U.S. annually, while directly and indirectly employing over 470,000 U.S. citizens.
About 60 per cent of these cars are exported.
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