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First, we would draw your attention to May 23rd, when President Trump announced an instruction to Commerce Secretary Wilbur Ross to begin a Section 301 review of the auto industry a week prior to the implementation of the Steel and Aluminum tariffs... China, the EU (specifically Germany), and Canada were the strategic trade targets in the approach. About a week later, Canadian Foreign Minister Chrystia Freeland snarkily announced her “sisterhood in trade” with EU Trade Minister Cecilia Malström, and how together they formed a strategy and were going to block President Trump... Freeland and Prime Minister Justin from Canada, then strategized with Emmanuel from France and Angela from Germany on how they were going to use the G7 to embarrass President Trump on trade conflict issues via the summit... he entire thing back-fired, bigly. President Trump announced the tariffs would continue until trade reciprocity improved... In the interim, the international audience has watched President Trump’s unrelenting approach toward China. In the grand-trade-conflict; China is a big fight none of the sideline players would ever attempt. However, the downstream consequence of the international trade team watching intently is their realization that President Trump is not bluffing. You can hear the proverbial gulps from across the Atlantic; and the tremors up North... Germany, without consulting with Emmanuel from France, just unilaterally announce the EU is willing to drop all trade tariffs against U.S. auto manufacturers as part of their strategy to fend-off steel, aluminum and crushing auto tariffs... "That would mean scrapping the EU’s 10% tax on auto imports from the U.S. and other countries and the 2.5% duty on auto imports in the U.S. As a prerequisite, the Europeans want President Donald Trump’s threat of imposing a 25% border tax on European auto imports off the table. [...] A French official said Paris was unaware of the proposal, and it wasn’t discussed during a recent summit between French President Emmanuel Macron and German Chancellor Angela Merkel in Meseberg, Germany." ...Don’t overlook Angela Merkel making this announcement without consulting with Emmanuel Macron. The German auto-sector is vital to the German economy. Lose the support of the auto industry in Germany and Chancellor Merkel is toast... How about the knee from Ms. Freeland’s “sister in trade“, Cecilia Malström: ..."She also said the WTO needs rules to address China’s subsidies and dumping of its goods in markets." ...The EU is now leaving Canada naked to the trade monster that is the indefatigable Trump. TTFN, it’s every snobby economic minister for themselves... U.S. automakers gain no short-term benefit from the EU dropping restrictive trade tariffs because Ford, and GM were forced to open plants in the EU to sell vehicles (prior best interests). The benefit to dropping the 10% tariff on American autos is really non-existent; it’s the threat of the 25% Trump tariff on German autos that has the entire sector panicked... When you plant your tree in another man’s orchard, you might end up paying for your own apples; it’s a risk you take... Fraulein Merkel better quickly start adding to her NATO defense funding and reconsider her opposition to the Iran deal withdrawal... Hilariously, in response to Merkel’s proclaiming a zero tariff proposal; the CEO of Volvo, a Swedish brand owned by the Chinese, is well positioned to benefit because Volvo are about to launch production inside the U.S. with plans of export to the EU. Conversely, on the losing side, GM shifted to making cars in China (Buick Encore), and Trump is nailing them with a 25% tariff... So we should keep an eye on Justin and Chrystia... My guess is, given the political stunt the Canadian duo just pulled at the G7 – President Trump is not inclined to take the lumps out of this one. It is increasingly likely that POTUS might quietly remove those 1 million imported Canadian autos from their manufacturing base and deliver them to Michigan, Pennsylvania and Ohio.

Thanks MaxistheBest.