Back and forth between the US and other trading partners continues – ANZ

Analysts at ANZ explained that the back and forth between the US and other trading partners continued overnight.  

Key Quotes:

“Donald Trump took to Twitter taking aim at one of the country’s beacons of American manufacturing – Harley-Davidson.  

This quote summed it up:  

“A Harley-Davidson should never be built in another country-never! Their employees and customers are already very angry at them. If they move, watch, it will be the beginning of the end – they surrendered, they quit! The Aura will be gone and they will be taxed like never before!”  

“While it certainly plays to those in the US manufacturing sector, rural communities dependent on agriculture are starting to hurt with a number of soft commodity prices tumbling – especially those where there is an existing oversupply situation. The escalating situation has prompted more than 60 companies and organisations representing American dairy farmers and processors to urge the administration to reconsider its imposition of new tariffs on Mexico, as it is their largest and most reliable export market. In retaliation for US actions on steel and aluminium imports, Mexico recently added new tariffs – some of which will reach as high as 25% next month – on American-made cheeses, among other products.”

“Time will tell of the outcome, but such shifting alliances will be important for dairy and other commodity markets.”