Europe is hoping that the May 18 deadline for imposing tariffs on EU cars exported to the US markets gets extended because of the US-China trade war. European Trade Commissioner Cecilia Malmstroem made these remarks during a recent interview.

The fate of $53 billion worth of car and auto parts manufactured in the EU hangs in the balance as Trump deliberates his next round of tariffs. Malmstroem remains hopeful that this decision could get delayed while US continues its negotiations on a trade deal with China.

Looks like the escalating US-China trade tensions are turning out to be a blessing in disguise for the EU. Against the backdrop of concerns about contraction and stagnating growth in EU markets, tariffs by the US will only spell more trouble for industries in this region.

For now, EUR/USD continues to trade around the 1.12 level as markets open on Monday.