Update : Europe has denied that any meeting is expected between Malmstrom and Lighthizer.

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US equity markets and European Auto stocks are plunging after reports that President Trump may introduce car tariffs as soon as next week (suggesting little hope for optimism from the G-20).

WirthschaftsWoche reports that US President Donald Trump may impose tariffs on imported cars as early as next week.

"The investigation report of the Ministry of Commerce is on the table of the President," reported WirtschaftsWoche, citing EU sources. "Trump will probably decide the tariffs next week after the G20 meeting in Buenos Aires."

The dispute over possible US tariffs on cars from the EU is not over. The Europeans have already prepared a list of retaliatory measures.

The report recommends 25 percent duty on car imports from all countries except Canada and Mexico. There will be no exceptions for certain car types.

"The report recommends as broad a policy as possible."

EU Trade Commissioner Cecilia Malmström will travel to Washington on Wednesday to discuss the issue with US Trade Representative Robert Lighthizer. In July, US President Trump promised EU Commission President Jean-Claude Juncker that he would not impose tariffs as long as the US and EU negotiated a free trade agreement. Trump and Juncker will see themselves on the sidelines of the G20 summit, but an official meeting is not planned.

The immediate reaction was selling in the major US equity indices as hopes for any good news coming out of the G-20 are dashed...

And European auto stocks are also getting hit...

with Daimler and VW down.

And Euro is dropping to two-week lows...