system
Given the following post, respond as if you're commenting on Reddit:
human
Why are cars so expensive in Europe?

I came across various articles saying that profit margin for car companies are the highest on European sales. Why is that so? What are the relevant diffrences compered to the US or China?
gpt
> What are the relevant diffrences compered to the US or China?

European Union imposes 10% tariff on cars produced outside of European Union (source: _A picture of the EU car industry_ by Library of the European Parliament, 2013). US imposes 2.5% tariff on personal cars. Reduced competition increases profit margins of producers.