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The EU sent comments to the USA on whether auto imports pose enough of a threat to US national security to justify tariffs and estimating the economic impact.

Growing strains between the United States and its global trade partners could have a disproportionate impact on South Carolina's economy, potentially hitting local workers and consumers in their wallets.

In a 10-page submission to the United States Commerce Department sent last Friday, the European Union said tariffs on cars and vehicle parts were unjustifiable and did not make economic sense.

In the meantime, Trump has told his US trade representative, Robert Lighthizer, to identify an additional $200 billion in Chinese goods for 10 percent tariffs.

He has slapped tariffs on imported steel and aluminum - action that has drawn retaliatory tariffs from US allies like Canada, Mexico and the European Union.

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But mounting trade tensions have opened a rift with the president.

On Monday, the European Union warned that $300 billion in US exports could be hit by retaliatory tariffs. This weekend, Ottawa imposed tariffs on United States goods worth around $12.6 billion.

Mr. Trump's administration wants Germany - which would be hardest hit by automotive tariffs - to pressure the European Union to come to an agreement.

EU countries approved a raft of tariffs on Thursday (14 June) targeting United States goods including whiskey and motorcycles in retaliation against painful duties imposed by President Donald Trump on European metals.

The new 25 percent import tax, which takes effect on July 6th, will drastically increase the price of circuit boards and other components built in China.

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The EU retaliation came after Trump's administration on June 1 struck Europe as well as allies in Canada, Mexico and elsewhere with tariffs on aluminum and steel.

The European Commission said in a letter that they would hit $300 billion of U.S. goods with tariffs if needed.

China, Mexico, and the European Union are also pushing back on the U.S.'s tariffs. Retaliatory tariffs would cost billions and kill thousands of jobs. Its tariffs are meant to deliver pain to American farmers, who overwhelmingly backed Trump in the 2016 election and whose interests are represented by powerful lobbyists and members of Congress. "So if there's countries out there that want to do that, I'm sure he'd be happy to sit down and make that happen right now and move this process forward a whole lot quicker".

Along with the tariff threats, the European Commission is also believed to have warned Trump that his behaviour could "result in yet another disregard of worldwide law" by the United States and said that any auto tariffs would "damage further the reputation" of the country.

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