Trump administration targets 25% tariffs on some $50 billion imports • Media reports stated that the Trump administration announced that it will impose 25% tariffs on about 1300 industrial technology, transport and medical products. • The announcement was made after China formally notified the World Trade Organization of retaliatory actions against the US. • The US new tariffs move was followed by China’s immediate condemnation and response that it will soon take measure of equal intensity and scale against the US. • After the positive climate in the markets started to rebound, risks seem to cloud the outlook and uncertainty may prevail again.
US pushing for preliminary deal on NAFTA • The US seems to be pushing for a preliminary deal on NAFTA to be announced at a summit in Peru next week. • Any preliminary deal (deal in principle) could be focusing on the auto-industry and what could characterize an American car. • The issue was also linked with the immigration issue and adds further pressure on US counterparts. • Should there be further positive headlines for a deal in NAFTA we could see the CAD strengthening further.