Donald Trump considering hitting EU with 10% tariffs on imported goods – report

Late yesterday Trump said the European Union “is really out of
line”, while the UK is “out of line but I’m sure that one, I think that one
can be worked out”.

The Telegraph cites a source in the Trump administration but that there wasn’t a broad agreement. It also says that Trump is testing the waters with Canada and Mexico to find out what he can get away with.

A source close to Mr Trump’s administration said there is not broad agreement “but some want to put a 10 per cent tariff on the EU”. “They’re talking about doing it on all imports from the EU.”

The report also touches on a critical point around the emergency measures that Trump is trying to use.

The administration is thought to be using Canada and Mexico to “test
the water” before using IEEPA to impose tariffs on the EU, The Telegraph
understands.

Another source close to the administration added:
“There is a huge disagreement on if he can weaponise IEEPA but they are
considering 10 per cent if they can.”

The US constitution gives congress power over tariffs with some carve outs for things around exceptional circumstances. It’s hard to believe that fentanyl from Canada (or the EU) would qualify. It seems we’re headed to find the limits of Presidential tariffs.

This article was written by Adam Button at www.forexlive.com.