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American And European Car Companies Fear Import Duties

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American and European car Companies fear import Duties. Both American and European companies in the automotive sector fear the consequences of any import duties on cars and car parts.

 

On Sunday evening, the US Department of Economic Affairs issued a long-awaited report on possible taxes.

The content of the report is not known, but if it appears that there are dangers to national security,

 US President Donald Trump can impose further trade taxes within ninety days.

But on both sides of the Atlantic, companies fear levies that can vary from 20 to 25 percent.

For example, an American study determines that, in the worst case of a 25 percent tax,

 366,900 jobs can be lost in the automotive sector and related industries.

A lobby group for car component manufacturers warns that the United States is at a disadvantage when tariffs are introduced.

European Commission from threatening language
From Germany, it is emphasised that German automakers account for 113,000 jobs in the United States.

The European Commission indicated that it would promptly respond any levies with its standards.

At the moment, the United States is charging a rate of 2.5 percent on European passenger cars.

The same price for American passenger cars in the EU is 10 percent. With other types of vehicles, the difference is the other way around.

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