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EU Slams Car Tariffs

Irate European Union officials urged Ukraine to withdraw emergency tariffs on auto imports, calling them unjustified and extremely damaging to the EU car industry.

Ukraine imposed new tariffs of 6.5 to 13 percent on auto imports — on top of a regular 10 percent import duty — last week, saying it was trying to protect domestic producers whose output had dropped sharply.

The conflict adds another layer of tension to EU-Ukraine relations, increasing the risk that long-planned deals on free trade and political associations between Kiev and Brussels will not be signed this year, as tentatively planned.

Ukraine imported new cars worth $3.2 billion last year, according to car industry group Ukravtoprom, with Germany among the three leading exporters. The others were Russia and Japan.

(Reuters)

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