USA: Trump planning to impose 10-fold tariff on car imports

US President Donald Trump has threatened to impose a 20 to 25 percent tariff on cars imported from the European Union (EU). The move comes after the government launched an investigation into the effects of auto imports on the country's national security. It was also revealed via a tweet that the study was almost complete.

The Alliance of Automobile Manufacturers will be filing a written comment on the proposed tariff on car imports. The group represents carmakers like General Motors Co, Toyota Motor Corp, Volkswagen AG and others.

At present, the US imposes a 2.5 percent tariff on cars imported from Europe and a 25 percent tariff on pick-up trucks. The EU meanwhile levies a 10 percent tariff on all cars imported from the USA.

The automakers have warned that the higher tax could cause an increase of US $5,800 per car on an average and a total of US $45 billion annually. Based on the 2017 car sales numbers, the move could wipe out the tax benefits currently availed on cars.

Source: Reuters