TARIFFS: PM Carney Confirms Canada Will Remove Retaliatory Tariffs September 1
Aug-22 16:16
Reuters reports comments from Canadian Prime Minister Mark Carney confirming previous reporting that Ottawa will remove its counter tariffs on all US goods covered by the USMCA trade agreement on September 1. See: TARIFFS: Canada To Remove Retaliatory Tariffs On 'Long List' Of US Products- BBG
- Carney says, "Canada currently has the best trade deal with the United States; it is important we do everything we can to preserve Canada's advantage."
- Carney confirms a key detail of the earlier Bloomberg report, stating that Canada, "will retain tariffs on steel, aluminum and autos as we work intensively with the US to resolve the issues there."
- Carney says that, "Canada and the United States will intensify discussions to address current trade challenges in strategic sectors," and "continue to take all measures necessary to support Canadian workers, businesses, and consumers".
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TARIFFS: US And EU Closing In On 15% Tariff Deal - FT
Jul-23 16:08
The Financial Times reports that the United States and European Union are closing in on a deal that would impose 15% tariffs on European imports, potentially heading off a threat issued by President Donald Trump earlier this month to hit the EU with a 30% tariff rate on August 1.
- FT notes: "Both sides would waive tariffs on some products, including aircraft, spirits and medical devices... [sources] said they understood the 15 per cent minimum tariff would include those existing duties, so Brussels views the deal as cementing the status quo. Tariffs on cars, which are currently 27.5 per cent, would therefore fall to 15 per cent."
- FT adds: "The bloc will continue to prepare a possible €93bn package of retaliatory tariffs, set at up to 30 per cent, in case they cannot agree a deal by August 1, the people said. A US official said the situation was fluid and subject to change."
- Bloomberg reported earlier that, absent a trade deal by August 1, the EU would "quickly hit the US with 30% tariffs on some €100 billion ($117 billion) worth of goods." The first wave of countermeasures would combine "an already approved list of tariffs on €21 billion of US goods and a previously proposed list on an additional €72 billion of American products into one package".
- Trump said on Truth Social earlier: "I WILL ONLY LOWER TARIFFS IF A COUNTRY AGREES TO OPEN ITS MARKET. IF NOT, MUCH HIGHER TARIFFS!"
US TSYS: Extending Lows on US/EU Trade Chatter
Jul-23 16:04
- Bit of classic risk-on at midday, Treasuries are extending lows, stocks climbing to new highs after Financial Times article posits the US & EU "close in on 15% tariff deal".
- Tsy Sep'25 10Y contract trades -12.5 at 111-00.5 (low) - nearing initial technical support at 110-30/08.5 (50-day EMA / Low Jul 14 & 16).
- Curves still mixed: 2s10s +0.353 at 51.204, 5s30s -0.618 at 102.429.
- Cross asset: Bbg US$ index retreats: BBDXY -1.55 at 1194.25; SPX eminis new high of 6385.0; gold down 41.58 at 3390.06.
EGBS: EGBs Slip On FT Report That EU-US Closing In On 15% Tariff Deal
Jul-23 16:01
- A swift sell-off in EGBs on the back of that FT report, 2Y German yields 3bp higher for the same increase on the day.
- RXA slides ~35 ticks to a low of 130.17, but still some way off testing support at 129.73 (Jul 21 low).
