EU: Trump’s Car Tax Costs Americans Themselves 15 Billion Dollars

EU: Trump’s Car Tax Costs Americans Themselves 15 Billion Dollars

EU: Trump’s car Tax costs Americans themselves 15 Billion Dollars. The European Commission warns that additional import duties on foreign cars will result in billions of dollars in damages for the US economy.

 

With possible extra taxes, Trump will ruin its economy by 13 to 14 billion dollars, the European Commission has calculated. American consumers will see the higher import tax in the car prices, posts Zoom News.

But the countermeasures would also have severe consequences. According to the commission, retaliatory measures would hit as much as 294 billion in US exports. This Amounts to about 19 per cent of total US exports in 2017.

The committee published a letter on Monday that was sent to the US Department of Commerce on Friday.

Import tariffs
In May Trump commissioned a study of higher import tariffs on cars from abroad.

As with the steel and aluminium levies, the president cited national security as the reason for the investigation.

Recently, Trump stated that the investigation into European cars would complete soon.

He threatened to introduce import duties of up to 20 per cent in the short term if the EU does not reduce the import tax on American cars.

Export
The European Union charges an import duty of 10 per cent on US cars, while the US costs a levy of 2.5 per cent. The EU emphasises that the US, for example, charges higher import tariffs for many trucks.

The European Union exported 43.5 billion dollars worth of cars to the United States in 2017.

The US shipped last year for only 7.2 billion dollars worth of vehicles to the EU.

Furthermore, European car manufacturers make about 2.9 million cars in the US, the EU emphasises, directly created 120,000 jobs. Indirectly, it would involve 420,000 jobs.

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