Malmstrom said the European Union can not lift its vehicle tariffs for the United States or it would have to do so for the rest of the world, and "there's no way" European Union member countries would agree to that.
SC is not the only state expected to suffer, Iowa pork producers could lose $560 million from a Mexico tariff on the product.
Trump's taunt was the latest salvo in an escalating trade war that saw the EU slap duties on US-made jeans and Harley Davidson motorcycles in a tit-for-tat response to USA tariffs on European steel and aluminium exports.
On Monday, he threatened to take action against the World Trade Organisation after media reports said he wanted to withdraw from the global trade regulator.
Mr. Trump's administration wants Germany - which would be hardest hit by automotive tariffs - to pressure the European Union to come to an agreement. The EU had calculated that a 25% tariff would have an initial US$13-14 billion negative impact on U.S. gross domestic product with no improvement to its current account balance.
Another official described the dispute between Trump and Western allies at the Group of Seven summit last month as a gift to Beijing because it showed European leaders losing a long-time ally, at least in trade policy.
"We have been in trade deficits with almost every country across the globe for years, and the president wants to ensure that that doesn't continue", Sanders said.
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Trump railed against his trading partners during the meeting, according to sources, and withdrew his support for a joint communique after leaving the summit, angering and bewildering some of Washington's closest allies.
Canada and the US are among the world's largest trading partners, with an estimated $673.9 billion in goods and services exchanged in 2017, with the USA scoring a small surplus ($8.4 billion), according to USA government data.
Harley-Davidson, which dominates the heavyweight United States motorcycle market, subsequently announced it would shift some USA production overseas to avoid higher costs for European Union customers.
Trump has implemented billions of dollars in tariffs targeted at China, Canada, Mexico and the European Union, saying such moves are needed to offset trade imbalances.
The Chamber based its state-by-state analysis on data from the US Department of Commerce and government agencies in China, the EU, Mexico, and Canada.
The number of exports that could be hit by retaliatory tariffs among the 10 most vulnerable states ranges from $1.7 billion in Pennsylvania to $6.2 billion in Washington.
Several states that voted for Donald Trump in the presidential election are likely to be among the hardest hit in the trade war the president has triggered, according to the nation's largest business organization.