The European Union warns the Trump administration that the newly-imposed tariffs on automotive imports might harm the American economy about $14 billion. With regards to the comment request from the United States, the EU sent a letter to the Commerce Department's national security division on Friday stating that the 25 percent import on car and automotive parts would initially have a negative effect on the US GDP as much as 13-14 billion USD while the current US account balance will not have any positive impact according to Politico reports. The EU further mentioned that car manufacturers in the bloc accounted 26 percent of the American auto production last year and showed that there was diverse foreign firms export production to the United States. While the EU suggested that countries could strike back to the US, as the Canada, EU, and Mexico already inflicted retaliatory tariffs towards Trump’s duties on aluminum and steel imports.
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