Car tariffs: EU counterattack to hit US exports worth $294 billion

The European Union (EU) has warned the United States that imposing import tariffs on cars and car parts would harm its own automotive industry and likely lead to counter-measures by its trading partners on $294 billion of US exports. In a 10—page submission to the US Commerce Department sent last on Friday, the EU said tariffs on cars and car parts were unjustifiable and did not make economic sense.The Commerce Department launched its investigation, on grounds of national security, on May 23 under instruction from President Donald Trump, who has repeatedly criticised the EU over its trade surplus with the US and for having higher import duties on cars. The EU has a 10 per cent levy, compared to 2.5 per cent for cars entering the US.