The European Union's carmakers could be hit by US tariffs of up to 15 percent, which would threaten thousands of jobs and the stability of the EU economy
BRUSSELS (Pakistan Point News / Sputnik - 07th November, 2019) The European Union's carmakers could be hit by US tariffs of up to 15 percent, which would threaten thousands of jobs and the stability of the EU economy.US Commerce Secretary Wilbur Ross reportedly said last week that the United States had had good talks with foreign carmakers and government officials, therefore, might do without new tariffs, but the tensions remain.
US President Donald Trump, who called for revamping US trade policy back in his 2016 campaign, has said that car imports could pose a threat to the country's national security. The European Union, in the face of Trade Commissioner Cecilia Malmström, rejected the security threat allegation and has suggested negotiating a trade deal that would include cars.
According to the statistics of the European automobile Manufacturers Association (ACEA), the EU exported 127.8 million Euros ($142 million) worth of passenger vehicles in 2018. Meanwhile, the United States exported $50.8 million worth of passenger cars. At the same time, ACEA points out that EU produces a number of its cars in the United States, creating jobs for about 120,000 Americans.
The automotive industry is a big part of the EU economy. ACEA statistics suggest that the industry, from manufacturing to services, gives jobs to 13.8 million people 6.1 percent of total EU employment.
Erik Jonnaert, the secretary general of ACEA, told Sputnik that the association supported the European Commission's "constructive efforts to address tariff and non-tariff barriers to transatlantic trade in automotive goods."
"Unilaterally imposed additional tariffs or quotas would clearly violate WTO rules. They are therefore not acceptable as a solution to the current dispute," Jonnaert said.
Robert Lauffer, of Germany's IG Metall trade union, says, "We are worried." German carmakers need international markets to prosper, Lauffer added.
"The employment in the German auto industry remains stable at the current high of 834,000, but without foreign markets, this would be unthinkable. Germany depends upon foreign markets and international trade. Whether this remains in times with the US customs war looming and in view of "Brexit" remains to be seen. Again, we are very worried," Lauffer told Sputnik
Germany cannot afford any trade war escalation, as an increase in tariffs would hit the country's car industry, according to Kay Gottschalk, the deputy national spokesperson for the Alternative for Germany.
"To prevent this from happening, the Merkel government and the EU must approach the Trump government in a much more self-confident manner in order to represent German and European interests," Gottschalk told Sputnik.
The US government will announce its decision on tariffs on November 13.
