BMW has released a warning that the tariffs that is set to be imposed by the United States of America on imported cars from Europe would negatively affect investment and result to job losses.
The car manufacturing titan has written to Wilbur Ross, the US secretary of state for commerce, to say that the policy could result in reduced investment because of the number of cars that the company exports from its plant that is located in South Carolina, which ships over 70 percent of the annual production of the company to other markets.
It said that there was “no apparent correlation” between the manufacturing of cars in the United States and its national security, while hinting that tariffs would not improve the growth or the competitiveness of the United States, because of higher tariffs reinforcing the competitiveness of other plants that are outside of the United States.
The letter comes as a response to the decision of US President Donald Trump last month to launch a national security investigation into the imports of trucks, cars, and automotive parts that could lead the way for his threatened 20 percent tariff on all imports of cars that are from the European Union.
The investigation was trigged amid the heightening tensions between China and the Uniyed States, after President Trump promised to impose tariffs on $50 billion (£37bn) worth of goods that are from China.
China retaliated with a tariff of 25 percent on the same value of goods that are from the United States. BMW said that it had already been negatively affected by that retaliatory tariffs.
BMW stated: “By insulating the United States from foreign competition, there is less incentive for American companies to strive to raise their productivity and look for ways and means of producing ever better goods (and services) ever more cheaply.”