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CNBC: Trade war headlines could get much worse before they get better as the US looks to Europe
* U.S.-China trade talks are set for next week, amid new uncertainty about progress in the talks.
* At the same time, the clock is ticking on a Feb. 17 report from the Commerce Department, which could recommend auto tariffs on European cars.
* Strategist say the Trump administration has 90 days to act on the auto tariffs, and is likely to slap a 25 percent tariff on European autos, after it has resolved talks with China.
With little apparent progress in U.S.-China trade talks, the Trump administration could be about to open up a new front in the trade wars by taking on the European auto industry — and that could spook markets.
U.S. negotiators head to China next week, and while there are few signs any kind of deal is near, many strategists expect to see some signs that talks will continue and an eventual agreement will be reached, even if a March 1 deadline on new tariffs is pushed back.
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Update: Gird Your Loins: Wall Street Fears Trump’s Trade War Is About to Get Worse (Vanity Fair)
WNU Editor: These massive trade imbalances should have been address years ago. As to what will happen next. The EU is not going to budge .... or more to the point .... the country that is benefiting the most is Germany, and they are the ones who are not going to budge. This is going to get messy, because U.S. tariffs are going to hurt everyone (and vice versa).
