While speaking to Reuters in an interview, the United States (US) Commerce Secretary Wilbur Ross renewed fears of auto tariffs from the Trump administration during early Asian morning on Wednesday.
Key quotes
Trump administration has not ruled out imposing tariffs on imported autos, after letting a review period end in November with no action.
We’ve been having negotiations with the individual companies. We’ve had some very good benefits from that.
It may or may not turn out that there is any need for the tariff.
Auto experts have said the U.S. administration may have to find other means if Trump wants to tax European or Japanese car imports, a key part of Trump’s pledge to make America’s trade relationships fairer.
FX implications
Amid the gloomy days of trade war risk, headlines like this add burden to riskier assets like equities and drag down the treasury yields. With Wall Street already closed for Tuesday on the red side and the US 10-year treasury yields trimming more than 12 basis points to 1.72%, the news has a little market reaction amid early Asian session.
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