European carmakers 'deeply concerned' by new US tariffs

The European automotive manufacturers on Thursday said they are “deeply concerned” by the US president's new tariffs on imports of foreign-made vehicles.

"It comes at a watershed moment for our industry's transformation and as fierce international competition mounts," the Automobile Manufacturers' Association (ACEA) said.

US President Donald Trump signed an executive order Wednesday imposing 25% tariffs on imports of foreign-made cars and light trucks as he continued his global import duty push.

Sigrid de Vries, the director general of the association, said in a press release that European automakers have been investing in the US for decades, creating jobs, fostering economic growth in local communities, and generating massive tax revenue for the US government.

“We urge President Trump to consider the negative impact of tariffs not only on global auto makers but on US domestic manufacturing as well," she added.

Tariffs will not just impact imports into the US, a penalty that American consumers are likely to pay, but measures on automotive parts will also hurt auto makers producing cars in the US for export markets, the ACEA said.

European manufacturers export between 50% and 60% of the vehicles they make in the US, making a substantial positive contribution to the US trade balance, it said.

"The EU and the US must engage in dialogue to find an immediate resolution to avert tariffs and the damaging consequences of a trade war," de Vries added.