President Trump has raised the prospect of applying a 20% duty on all imported vehicles, up from the current 2.5% WTO rate, to help protect the domestic auto industry. It isn’t clear whether the higher rate will apply to NAFTA produced vehicles (presumably not if manufacturers meet rules-of-origin requirements) or those from South Korea given the recent KORUS talks’ completion. Europe’s automakers are a likely target, particularly if a tariff war erupts after the implementation of steel and aluminum duties by the U.S. Exporters are clearly expecting tariffs, with EU automotive exports to...