Europe, Canada Warn of Response if US Deploys Auto Import Duties

Should the U.S. put tariffs in place on autos and auto parts as a result of the Section 232 trade investigation, European and Canadian officials have signaled they will respond, potentially hitting hundreds of billions of dollars in U.S. products with retaliation.EU Ambassador David O’Sullivan said he estimates $294 billion worth of US exports, “around a fifth of total U.S. exports in 2017,” would be hit if Trump approves auto tariffs.Kirsten Hillman, Canada’s deputy ambassador to the U.S., said “Canada will once again be forced to respond in a proportional manner” if tariffs are imposed.U.S. Commerce Secretary Wilbur Ross opened a hearing Thursday on the Section 232 investigation by trying to calm the waters. “It is clearly too early now to say if this investigation will ultimately result in a Section 232 recommendation on national security grounds, as we did earlier with steel and aluminum,” Ross said. “But President Trump does understand how indispensable the U.S. automobile industry is.”Commerce has until February to report its findings to Trump, who has the final say on any tariffs.