Trump weighs new trade investigation to justify tariffs on EU - Politico
|Trump Weighs a new trade investigation to justify tariffs on EU, in an article written in the Politico.
Introductionary paragraph
Trump administration officials are considering whether to start a new trade investigation against the European Union as the window closes for hitting Brussels with automobile tariffs, according to multiple people briefed on the issue.
Such a move would mean that European auto imports wouldn't be subject to duties out of national security concerns, but the trading bloc would be subject to a much broader inquiry, the people said -
Politico.
FX implications:
President Donald Trump was expected to make a decision on European auto imports tariffs by November 14th on whether to take action against them. Considering we are past that date and we have heard nothing of it since the market is not showing signs of concern and are fixated on US/Sino trade dispute instead.
However, as the article goes onto reading, "Questions are now being raised over whether he can continue using Section 232 of the Trade Expansion Act of 1962 to take any future tariff action. The previously little-used provision allows the president to impose trade restrictions if imports are considered a threat to national security." Indeed, should this come to the forefront of headlines, markets may well take heed and the euro may come under pressure.
Casting minds back, Trump used the Section 301 provision, a more sweeping act that could subject a number of European industries, subsidies and other programs to scrutiny, to justify "wave-after-wave of tariffs on China," as the Politico reminded. This followed an investigation by the U.S. Trade Representative’s Office which found that Beijing's policies on technology transfer and intellectual property burdened or restricted U.S. commerce – Indeed, this is something for markets to keep an eye on.
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