Adding to the global risk-off, Bloomberg came out with the news that the Trump administration extended its umbrella of aluminum and steel tariffs to certain imported nails, staples, electrical wires and some downstream parts that go into automobiles and tractors, among other products.
Key quotes
Some imports of derivative aluminum products would be subject to an additional 10% duty, while some derivative steel products would be slapped with a 25% tariff.
Argentina, Australia, Canada and Mexico were exempted from the additional aluminum tariffs.
As for the steel tariffs, exemptions were allowed for Brazil, Argentina, Canada, Australia, Mexico and South Korea.
FX implications
News like this adds to the market’s risk-off that is already in full play amid the fears of China’s coronavirus and attacks on the US embassy in Iraq. While portraying the same, AUD/JPY drops to a fresh 13-day low near 74.20 while writing on early Monday morning in Asia.
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