UPDATED 7:59 AM PT — Mon. July 2, 2018
European Union officials are claiming President Trump’s new tariffs on car imports could cost the U.S. economy up to $14 billion.
The EU warned the Commerce Department against imposing a reciprocal 25-percent tariff on European car imports due to its possible negative impact to U.S. GDP growth.
Officials in Brussels stressed that European car-makers account for up to 26-percent of U.S. automotive output.
This comes after President Trump pointed out that the EU is charging an unfairly high tax on American-made cars.
Experts say an increase in U.S. tariffs could pose a serious challenge to European auto-makers.
“We have right now a 2.5% tariff on all cars that come in and if you’re an EU car seller you figure this into your business strategy, okay, we’re selling to the U.S. — we have this relatively minor tariff, 2.5% to deal with, if that was to increase tenfold, it’s gonna be a huge problem,” said international trade expert Alex Lawson.
EU officials also said around 60-percent of U.S.-made cars of European brands are exported into third countries, which benefits the U.S. economy.