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

Joshua Gibson FXStreet

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

FXStreet

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.

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.