Following a day filled with trade doubts, Politico recently came out with news, while relying on a person familiar with the matter, mentioning that the United States (US) President Donald Trump is expected to announce this week that he is putting off a decision on whether to impose tariffs on European Union autos for another six months. The report also clears that President Trump faces a Wednesday deadline on whether to slap duties on imports of vehicles.
That would avoid a new bruising dispute with one of the United States' biggest trading partners, just as Trump is trying to put out another trade fire by striking an initial deal with China. But it would also set the stage for Trump to revisit the controversial trade issue in the throes of next year's presidential campaign.
The person with familiar the decision cautioned there is always uncertainty surrounding Trump’s final determination when it comes to trades and tariffs. But barring some unforeseen development, the president is expected to announce another six-month delay, the person said.
A White House spokesperson declined to say what action Trump could take this week, and Lighthizer's office did not respond to questions on the issue.
An industry official said businesses have also been led to believe by White House officials that Trump will not impose duties this week, particularly after the Japan deal was reached.
While there was no immediate reaction to the news, such trade-positive reports could support the traders’ risk-bearing capacity and can be witnessed through an uptick in AUD/USD and USD/JPY while negatively affecting Gold.
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