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US launches trade probe into China and EU in bid to revive Trump tariffs

The Trump administration on Wednesday opened a new trade investigation into manufacturing in foreign countries – an effort that comes after the Supreme Court struck down US President Donald Trump’s previous use of tariffs by declaring an economic emergency. Trump and his team have made clear that they’re seeking to replace the hundreds of billions of dollars in lost revenues after the Supreme Court’s February ruling by using different laws to establish new tariffs. In this case, the...

Mar 11, 2026 &03461111202631; 23:46 UTC www.scmp.com Trending 4/5

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Negative for markets

Sentiment score: -65/100

High impact Short-term (days)

WHAT THIS MEANS

The Trump administration has initiated a new trade investigation into foreign manufacturing, specifically targeting China and the EU, as an alternative strategy to reimpose tariffs following the Supreme Court's February ruling that invalidated previous tariff declarations. This represents a significant shift in trade policy approach and could lead to substantial tariff implementations through different legal mechanisms.

AI CONFIDENCE

85% Very high

SENTIMENT GAUGE

NEWS POWER SCORE

AFFECTED ASSETS

↓

IT→.MI

IT→.MIIndex

Expected to decline

Italian equities exposed to EU manufacturing and trade tensions with US

↓

Euro Stoxx 50

^STOXX50EIndex

Expected to decline

European blue-chip index vulnerable to US tariff threats on EU exports

↓

DAX (Germany)

^GDAXIIndex

Expected to decline

German manufacturing sector heavily exposed to US trade disputes

↓

Euro / US Dollar

EURUSDCurrency

Expected to decline

EUR weakness expected from trade war escalation and EU economic concerns

⇅

S&P 500

^GSPCIndex

High volatility expected

Mixed impact: tariff benefits for domestic US manufacturers offset by supply chain disruption risks

⇅

Oil (WTI Crude)

CL=FCommodity

High volatility expected

Oil prices sensitive to trade war escalation and potential economic slowdown

PRICE HISTORY

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⚡ SUGGESTED ACTION

Short European indices (STOXX50E, GDAXI) and consider EUR/USD short positions as trade tensions escalate. Monitor tariff announcement timelines closely; defensive sectors and domestic-focused companies may outperform in this environment.

KEY SIGNALS

New legal framework for tariff implementation circumventing Supreme Court rulingEscalating US-China-EU trade tensionsPotential for hundreds of billions in new tariffsSupply chain disruption risksInflationary pressure from tariff implementationRetaliatory measures likely from EU and China

SECTORS INVOLVED

ManufacturingAutomotiveTechnologyIndustrial GoodsTrade & LogisticsConsumer Discretionary

Analysis generated on Mar 12, 2026 at 00:02 UTC

Disclaimer: This analysis is generated by artificial intelligence for informational purposes only and does not constitute financial advice, investment recommendation, or solicitation. Original reporting by SCMP Business. Always conduct your own research and consult a qualified financial advisor before making investment decisions.

US launches trade probe into China and EU in bid to revive Trump tariffs

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