Trump Risks New Front In Trade War As Talks With Europe Falter

Two months ago, analysts at Bank of America proclaimed that “spring is coming” for the European economy after it slipped into a mild recession late last year. Unfortunately, a massive stimulus injection from Beijing has failed to spark a global reflationary wave, and on Wednesday, Germany – the largest and most important constituent of the European economy – revealed that its labor market had hit a major pothole, the latest sign that the economic pain on the Continent may have only just begun.

With global trade in free fall…

…And with slumping sales already weighing on the global auto industry, a critical engine (no pun intended) of Europe’s industrial economy, EU bureaucrats now find themselves in the uncomfortable position: They’re at the mercy of Washington and President Trump, who has been threatening to open up another front in his trade war by slapping ‘Section 232″ national security tariffs on imports of cars and car parts (with exceptions for USMCA partners Canada and Mexico).

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