November 24, 2020

US Tariffs on cars; tweets and motorbikes > Highlights

US Tariffs on cars, tweets and motorbikes

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Trump’s intriguing tweets are the focus of the attention of the ongoing tariff war.  Harley Davidson and US tariffs on cars from the E.U. were in the US President’s firing line on Tuesday.

Trump accused Harley-Davidson that they use trade tensions over tariffs as an excuse to move production for European customers overseas. In one of his tweets he said “Early this year Harley-Davidson said they would move much of their plant operations in Kansas City to Thailand […] long before Tariffs were announced. Hence, they were just using Tariffs/Trade War as an excuse”.

Harley-Davidson had previously announced that it would move motorcycles production from the United States to its international facilities.

Recently Trump decided to impose 10% and 25% tariff on imported steel and aluminum, respectively, from EU, Canada and Mexico. The response on the part of once US allies was instant. EU began charging import duties of 25% on a range of U.S. products including motorcycles like Harley’s.

Tit-for-tat policy seems endless. Τrump has threatened to impose a 20% tariff on all imports of EU-assembled cars.

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The dollar inched up nearly 0.5% against its major-traded rivals.

The latest global trade concerns curbed traders’ risk appetite with safe-haven currencies such as the Yen and the Swiss franc firmly supported. However, high-yielding currencies such as the Australian dollar is in retreat.

The Canadian dollar was down 0.25%. The CAD hovered near a one-year low last week, battered by volatility in crude oil prices.

The Sterling dropped almost 0.50% before EU summit on June 28-29, still above its 7-month lows reached last week.

The Euro rose 0.3%, extending its recovery from its 11-month low on Thursday, mainly caused by regional political instability.

Oil prices bounced supported by various production losses. Yet, oil prices are still under pressure from higher supply from elsewhere in OPEC and escalating trade conflicts.

Sources: Reuters, Euronews, bbc.com

PLEASE NOTE The information above is not investment advice.