Report in a German magazine
Trump might be going on offence here. If so, markets are going to roll over big time.
Here's the story.
"The report recommends 25 percent duty on car imports from all countries except Canada and Mexico," the Wirschafts Woche says, citing the Commerce Dept document delivered to the President.
It also says the EU's Malstrom will be in Washington tomorrow to discuss the issue with Lighthizer.
German carmakers exported $20 billion worth of cars to the US last year. Previously, Juncker and Trump had agreed not to impose tariffs so long as they were negotiating but Trump has expressed frustration at the slow pace of negotiations.
For me, the winners here could be Canada and Mexico as the US sources more parts from there instead of elsewhere. The issue is that those countries probably can't meet the demand and will be unwilling to invest because the US tariff policies may not last.
