US: Tariffs Are Going To Proceed In A Measured Way - Navarro
Peter Navarro, the White House senior counsellor for trade and manufacturing and a key strategist of President Donald Trump’s trade policy, has spoken on tariffs at a Politico Live event. Stream. Key remarks below.
- Navarro says he expects a call between Trump and Chinese President Xi Jinping to take place today to discuss tariffs. Says "it's up to [Trump]" if China gets a tariff pause.
- Ask about potential 60% tariffs on China, as floated by Trump on campaign trail. Says the admin is "going to proceed in a measured way using investigative studies... everything is going to be data-driven."
- Navarro says media fundamentally misunderstands intentions of tariffs by fixating on “downsides”. He characterises tariffs as an action against fentanyl: “This is a drug war, this is not a trade war,” later adds it is also a “terrorist war and border invasion war.”
- Navarro says that Secretary of State Marco Rubio is leading a DHS review of narcotic and immigration measures, to be undertaken during the 30-day pause of Canada/Mexico tariff. Says "let's see what happens" when asked if Trump will threaten more action at the end of the pause.
- Navarro addresses logic of threatening tariffs against Canada: “Mexican drug cartels are expanding in Canada…” cites ‘de minimis’ loophole exempting tariffs for packages valued at $800 or less, accuses Canada of allowing terrorists to cross border.
- Navarro: “If Trump succeeds in trade actions, we will structurally shift American economy from over-reliance on income taxes to tariff revenues... Tariff revenues will play an important role, countries won't have to pay tariffs if they invest in US.”
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
JGB TECHS: (H5) Returns Lower
- RES 3: 149.55 - High Mar 22 (cont)
- RES 2: 147.74 - High Jan 15 and bull trigger (cont)
- RES 1: 144.48/146.53 - High Nov 11 / High Aug 6
- PRICE: 142.12 @ 15:01 GMT Jan 03
- SUP 1: 141.65 - Low Dec 30
- SUP 2: 141.56 - 1.764 proj of the Aug 6 - Sep 3 - 9 price swing
- SUP 3: 141.05 - 2.000 proj of the Aug 6 - Sep 3 - 9 price swing
Markets slipped on the hawkish Fed and are yet to fully recover, touching 141.65 on the way lower. Medium-term trend signals on the continuation chart continue to point south. A resumption of the trend would pave the way for a move towards 141.56, a Fibonacci projection point on the continuation chart. A stronger recovery would open 144.48, the Nov 11 high. Further out, key resistance is at 146.53, the Aug 6 high (cont).
USDCAD TECHS: Bull Flag Highlights A Clear Uptrend
- RES 4: 1.4669 2.0% 10-dma envelope
- RES 3: 1.4539 3.382 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 2: 1.4508 3.236 proj of the Oct 17 - Nov 1 - 6 price swing
- RES 1: 1.4467 High Dec 19
- PRICE: 1.4392 @ 15:50 GMT Jan 3
- SUP 1: 1.4336 Low Dec 20
- SUP 2: 1.4307/4232 20-day EMA / Low Dec 17
- SUP 3: 1.4136 50-day EMA
- SUP 4: 1.4011 Low Dec 5
USDCAD is unchanged and bulls remain in the driver’s seat. The latest pause appears to be a flag formation - a bullish continuation signal. Note too that moving average studies are in a bull-mode position, highlighting a dominant uptrend. Sights are on 1.4508 next, a Fibonacci projection level. Initial firm support to watch lies at 1.4307, the 20-day EMA. A pullback would be considered corrective.
AUDUSD TECHS: Southbound
- RES 4: 0.6471 High Dec 9
- RES 3: 0.6408 50-day EMA
- RES 2: 0.6341 High Dec 18
- RES 1: 0.6247/6282 High Dec 30 / 20-day EMA
- PRICE: 0.6204 @ 15:21 GMT Jan 3
- SUP 1: 0.6179 Low Dec 31
- SUP 3: 0.6158 1.236 proj of the Sep 30 - Nov 6 - 7 price swing
- SUP 3: 0.6100 Round number support
- SUP 4: 0.6045 1.500 proj of the Sep 30 - Nov 6 - 7 price swing
A bearish trend condition in AUDUSD remains intact and the pair continues to trade closer to latest lows. Recent weakness maintains the price sequence of lower lows and lower highs. Note that moving average studies are in a bear-mode position too, highlighting a dominant downtrend. Scope is seen for an extension towards 0.6158 next, a Fibonacci projection. Initial firm resistance to monitor is 0.6282, the 20-day EMA.
