US: Something new on the tariffs front – Commerzbank
|The tariffs imposed by US President Trump are set to take effect today. However, there is now new information about countries that have not yet reached an agreement with the US, Commerzbank's FX analyst Antje Praefcke notes.
Tariff dispute may weigh on the affected currencies
"Globally, a tariff of at least 10% will apply, while countries with a trade surplus with the US will face at least 15%. For almost all of the US's trading partners, this means higher tariffs, which are set to come into effect on August 7. In some cases, tariffs for certain countries will rise to as much as 41%, with special tariffs for certain sectors (pharmaceuticals, semiconductors etc.) to be announced in the coming weeks."
"Some countries will be hit particularly hard, such as Canada, with 35% for goods not covered by the USMCA agreement. Switzerland will also be subject to 39%, and South Africa to 30%. Norway, on the other hand, seems to have got away relatively well with 15%, as have most Asian countries. Trump is thus increasing the pressure on countries to conclude an agreement."
"The currencies of the countries heavily affected could come under downward pressure today in light of this news. It remains to be seen how the tariff dispute will continue and how inflation in the US will develop as a result of the tariffs. With this news, one thing is clear: the issue will continue to occupy us for a long time to come, and surprises are to be expected at any time."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.