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Martin: Tariffs are back in the news again today after President Donald Trump, who has called himself tariff man on many occasions singled out the euro as a devalued currency and foreign exchange markets. Now that isn't particularly interesting because he's made that point on several occasions in the past, but what it does do now is maybe raise the temptation for some investors to think that the president is going to target Europe next as his latest member of the Tariff hit-list. You'll know of course that the president used the terror threat to extract political concessions from Mexico with respect to immigration control. Will he do the same with Europe and will he use the pretext of NATO spending to do exactly that? TheStreet's founder Jim Cramer thinks so. He suggests the German cars could be next in line for levies on imports into the United States. If the president were to use tariffs in order to try to get Germany in particular to increase its NATO spending commitment, NATO members are meant to spend about 2% of GDP on military spending. Germany is only going to spend 1.35% of GDP this year and won't get to the 2% target until well past 2024 and that's against a commitment that they made to the president only a year ago. So the terrorists story is back in the frame and it should be on investors' minds and it's something that we're going to keep an eye on in the coming weeks right here at TheStreet.com.

President Donald Trump reminded investors Tuesday that Europe, and its $1.2 trillion auto sector, might be next on his tariff hit-list.

Trump tweeted that the euro, as well as other global currencies, are "devalued" against the dollar, which itself is trading a two-and-a-half month low on foreign exchange markets, and that this put the U.S. at a disadvantage in world trade. TheStreet's founder, Jim Cramer, thinks Trump's use of tariffs to extract concessions on non-trade issues, such as with Mexico and immigration, raises huge risks for European carmakers, which could find themselves on the business end of fresh U.S. levies if the President were to use tariffs to compel countries such as Germany and France to increase their NATO spending commitments. Real Money contributor Stephen Guilfoyle said the government is more likely than not to use tariffs for political ends following the weekend agreement with Mexico.

Germany reaffirmed a commitment to increase its military spending to 2% of its GDP by 2024 following a series of tense meetings with Trump at last year's NATO summit, but indicated last month that its 2019 outlay would only rise to around 1.35% and that it would only spend 1.5% of its GDP by the 2024 deadline.

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