US car industry sounds alarm on import tariffs

US OFFICIALS have been warned off imposing tariffs on cars imported into America.

A commerce department hearing was told such levies risked causing job losses, economic damage and making the US car industry less competitive.

Donald Trump is considering using national security laws to introduce the tariffs. However, the US automobile trade association told the hearing that there was “no evidence automotive imports pose a threat to our national security”.

Earlier in the day, Cecilia Malmstrom, the EU trade commissioner, warned if president Trump introduced the tariffs then the bloc would retaliate.

She said the 25pc levy the US brought in on steel imports could be a consequence of global overcapacity in metals, but added “similar moves on cars would be disastrous”.