Trump's new US auto tariff proposal to weigh on risk

Ross J Burland FXStreet

The WSJ has run an article in recent trade which could be a weight on market sentiment as trade war risk comes back to the fore.

"The Trump administration is looking into using national-security laws to impose new tariffs on vehicle imports, according to administration officials and industry executives briefed on the plan.

President Donald Trump has asked his team to investigate using a legal provision known as “Section 232” of the 1962 Trade Expansion Act to find whether tariffs or other restrictions are needed on imported cars. It is the same legal justification the administration used to impose tariffs on steel and aluminum imports in March,"

- the WSJ wrote.

Previously, Trump's administration had also imposed hefty import tariffs on steel and aluminum under Section 232 of the 1962 U.S Trade Expansion Act, which allows safeguards based on “national security.”

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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