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US President Donald Trump teases tariff exemptions on “unavoidable” April 2 tariffs

United States (US) President Donald Trump has hit hyperspeed on his turnaround time on his own tariff threats on Monday. President Trump teased the potential for "a lot" of countries to get exemptions on his own planned tariffs that are slated to come into effect on April 2. The exact details of the Trump administration's planned tariff package remains eternally elusive, but that hasn't stopped President Trump from reiterating both his steadfast dedication to raise US government funding flows from taxing his own constituents, and also expressing a willingness to explore exemptions for any country willing to come to the table.

President Trump's new tariff comments come hot off the heels of his own comments made earlier on Monday. Donald Trump specifically highlighted Hyundai's recent announcement to invest heavily in automotive manufacturing within the US. The fact that Hyundai's planned investment is entirely earmarked for expanding the production of electric vehicles, an automotive class the Trump administration is actively trying to curtail, apparently didn't make it to the president's desk in time for his comments.

The EV production expansion by Hyundai will also likely draw ire from Donald Trump's pseudo-presidential running mate, Elon Musk, whose electric car company Tesla will face new competition pressures within the US market.

Key highlights

Hyundai is to build a steel plant in Louisiana, it will create around 1400 jobs.

Hyundai investment makes it clear that tariffs work. Hyundai will not have to pay any tariffs.

The Hyundai steel plant is part of a larger $21 bln investment in the US.

Hyundai is increasing auto manufacturing in Georgia too.

Hyundai plant will produce more than 2.7 million metric tons of steel a year.

I may give a lot of countries breaks on tariffs.

I will be announcing additional tariffs over next days.

I will announce additional tariffs over the next days on autos, lumber, and chips.

Tariffs for doing business with Venezuela will be on top of existing tariffs.

Not all tariffs will be included on April 2nd.

I will probably announce automobile tariffs over the next few days.

Author

Joshua Gibson

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

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