A leading European Union (EU) car industry association on Tuesday expressed “grave concern” at potential US tariffs on automotive imports, warning that they would hurt manufacturers on both sides of the Atlantic.
The comments came days after the US Department of Commerce submitted its assessment to President Donald Trump on whether importing cars and parts is affecting national security.
The report, which findings have not yet been made public, could form the basis for Trump to increase import duties for automotive goods entering the US, 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 US,’’ the European Automobile Manufacturers’ Association (ACEA) warned in a statement.
“This would hit US consumers in their pockets and have a counter-productive effect on the US 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.