Economy

GM WARNS: Trump's tariffs 'undermine our ability to compete' (GM)

GM WARNS: Trump's tariffs 'undermine our ability to compete' (GM)”

European Union officials are claiming President Trump's new tariffs on auto imports could cost the USA economy up to $14 billion.

The EU's letter reportedly said that it has not yet decided on countermeasures to possible vehicle tariffs, but said it is "likely" to apply them to "a significant volume of trade" in the event Trump imposes such tariffs. The EU has a 10% levy, compared with 2.5% for cars entering the United States.

BMW asserts that tariffs will make production locations outside the United States more competitive.

Trump said Sunday that the European Union was possibly just as bad as China, just smaller" when it came to how the bloc trades with the U.S. "Take a look at the auto situation: "They send a Mercedes in, we can't send our cars in", the president complained.

"We'll spare no effort, be it at the technical or political level, to prevent this from happening", a spokesman for the Commission told reporters, adding that Commission President Jean-Claude Juncker's trip to Washington later this month would seek to stop any new U.S. tariffs.

Trump, however, has repeatedly defended his position, criticizing the European Union, Canada, and China on trade both during the Fox interview and at a recent rally in SC, where Trump went as far as to declare the United States the "piggybank" other nations like to take from.

Last week, European Council President Donald Tusk warned that Trump's policies are harming trans-Atlantic relations and that "we must be ready to prepare our Union for worst-case scenarios".

Imports had, it said, not shown a dramatic increase in recent years and largely grown alongside overall expansion of the USA auto market, with increased demand that could not be met by domestic production.

General Motors also warned that proposed tariffs on foreign cars and parts could result in fewer cars being built on U.S. soil.

"We ask that you will support us by imploring our elected officials to recognize that these tariffs are seriously harmful to American businesses like Moog", the company says.

This is based on a letter, reported by the Financial Times, from the European Commission to the U.S. Commerce Department.

The letter also said any auto tariffs would "damage further the reputation" of the U.S., according to the FT. Military vehicles, such as the Humvee, were made by different, more niche producers.



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