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FX weekly: The USD is now in Trump’s hands
The biggest if for our negative USD tilt is whether Trump will use the report from the Commerce Department to hike auto tariffs. Higher tariffs risk fuelling further setbacks, in a time when climate change may already be weighing on consumption. Auto tariffs are looming as the brand new report on the matter from the Commerce Department calls car imports a security threat according to several sources. This leaves Donald Trump with a three-month window to call an executive order that imposes a 25% tariff on car imports. The risk of auto tariffs was part of fuelling the setback in EUR/USD and European auto-stoxx roughly ... (full story)