HiFX Data Update - US to impose new tariffs

HiFX Data Update - US to impose new tariffs on USD$200 billion of China imports, effective 24th Sept

The Trump administration is set to impose tariffs on approximately USD$200 billion worth of imports from China, effective 24th September.

Key points are:
Tariff rate starts at 10% and will got to 25% by end of 2018

Some items excluded – smart watches, baby car seats, safety gear, chemical inputs for manufacturing, textiles, and agriculture

Trump administration remains open to negotiations with China, but no details on talks available

Trump administration is seeking systemic changes from China. Beijong has not seriously engaged on that

They do not want to constrain China’s growth or development

China has said it will retaliate with new tariffs on US goods

Trump says in statement if China retaliates he will immediately pursue tariffs on USD$267 billion in Chinese imports

Earlier this morning NZ Prime Minister Jacinda Ardern stated in a radio interview that she got a ‘hint’ of Thursday GDP numbers and that she was pleased with them. The NZDUSD jumped 10 pips in response. However, her office subsequently denied that she had advanced notice of the figures, insisting the PM made a mistake. Makes Thursdays release even more interesting than usual!

The NZD is lower in response to the US tariff news.

Current indicative levels are:

NZDUSD 0.6560 / 0.6595
NZDAUD 0.9175 / 0.9200
NZDEUR 0.5620 / 0.5645
NZDGBP 0.4985 / 0.5010
NZDJPY 73.30 / 73.55

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