Chamber of Commerce found that tariffs imposed on China, the European Union, Mexico and Canada would threaten $3 billion in S.C. exports, including passenger vehicles, steel products and iron products.
European Commission spokesman Margaritis Schinas said the US investigation into the possibility of auto tariffs "lacks legitimacy, factual basis and violates worldwide trade rules", just like last month's USA tariffs on steel and aluminum imports.
The Commerce Department is investigating tariffs on cars and auto parts from the European Union and other trading partners on the grounds of national security under orders from US President Donald Trump.
The Financial Times reports that the European Union has threatened to retaliate if US President Donald Trump places tariffs on European cars.
"In 2017, US-based European Union companies produced close to 2.9 million automobiles, which accounted for 26% of total USA production", it said, adding that they supported 120,000 U.S. jobs. Using a state-by-state analysis, it argues Trump is risking a global trade war that will hit the wallets of US consumers.
"If you need a product, and you've got a good source, and the price goes up 10 or 15 cents a pound, [larger companies] they're just going to have to add the increase to their product", said Joann Vandemark, who runs Milward Alloys near Buffalo, New York.
"Trade, including imports, has not threatened the health of the USA automotive sector, but in fact has strengthened it", said John Bozzella, the chief executive of the Association of Global Automakers.
Shanghai's bear market lurch continued overnight, with losses of up to 3 percent as firms await USA tariffs on $34 billion worth of Chinese goods this week, and new business surveys showed some worrying signs of deterioration. It calculated that a 25 percent tariff would slash an initial $13-14 billion (up to Rs 96,331 crore) off United States gross domestic product, with no predicted improvements to its own incomes.
However, the White House later played down Mr Trump's tweet.
According to Foreign Minister Chrystia Freeland, Canada is working closely with the European Union and Mexico to take on the USA economic machine.
"The EU is not inclined to give in to bullying by US President Donald Trump", said Holger Schmieding, chief economist at Berenberg. The U.S. does, however, maintain a 25 percent tariff on imported light trucks.
It was also reported that BMW has joined Hyundai and General Motors in opposing the Trump administration's plan to impose tariffs on imported cars, and the automakers have written to the Secretary of Commerce to voice their concerns. The decline in vehicle sales, the company said, would have a negative impact on the workforce in the US, and threaten jobs down the supply chain. "They made previous year 151 billion dollars in trade surplus".
Trump's threat to pull out of the North American Free Trade Agreement (NAFTA) could also hurt the supply chain within the industry. Steel and aluminum products, as well as automobiles, are among Michigan's hardest hit.
The group representing major foreign automakers, including Toyota, Volkswagen, BMW and Hyundai, the Association of Global Automakers said the tariffs would harm automakers and US consumers. In 2016, he introduced an economic strategy of "putting America first", saying that he would negotiate "fair, bilateral trade deals that bring jobs and industry back onto American shores".