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Trump has appointed Greer, a former chief of staff to trade representative Lighthizer, as his trade chief, signaling a push for aggressive trade policies against China. Greer advocates for strict enforcement of existing trade agreements and new deals with countries like the U.K. and India, while downplaying inflation risks from tariffs. He emphasizes the need for long-term strategic competition with China, despite potential short-term costs for businesses.
The US dollar steadied against major currencies as investors assessed President-elect Trump's tariff promises and awaited key inflation data. The New Zealand dollar rose following a 50 basis point rate cut by its central bank, while the Israeli shekel reached a three-month high amid a ceasefire agreement between Israel and Hezbollah. The dollar index dipped slightly, reflecting recent volatility influenced by political developments.
President-elect Donald Trump is set to announce Jamieson Greer as the new US Trade Representative, emphasizing the significant role of tariffs in his economic strategy. Trump plans to impose a 25% tariff on imports from Canada and Mexico, along with a 10% levy on Chinese goods, despite warnings from economists about potential inflation and increased national debt. Greer, a protégé of former Trade Representative Robert Lighthizer, is expected to be instrumental in executing these trade policies.
The Canadian dollar may decline further if US President-elect Donald Trump follows through on his threat to impose 25% tariffs on Canadian goods, according to CIBC. The loonie could test its pandemic-era low of C$1.4668, but relief is expected in the second half of 2025.
Auto insurance costs are expected to rise further due to new tariffs proposed by President-elect Donald Trump. Approximately 60% of car replacement parts in the U.S. are imported, primarily from Mexico, China, and Canada. Increased tariffs will elevate parts costs, which constitute about 40% of average repair bills, leading insurers to raise rates.
President-elect Donald Trump's proposed 25% tariffs on goods from Canada and Mexico are expected to significantly increase aluminum and steel prices in the US. Analysts from Citigroup highlight that Canada and Mexico are major suppliers, with Canada providing about 60% of US aluminum and 25% of steel imports.
The dollar strengthened after President-elect Donald Trump announced plans for additional tariffs on Mexico, Canada, and China, disrupting expectations for a more moderate economic approach. The Bloomberg Dollar Spot Index rose by 0.4%, while the Canadian dollar and Mexican peso fell significantly, with the latter dropping over 2%. In response to the dollar's rise, the People's Bank of China intervened to support the yuan by setting a stronger daily fixing than anticipated.
Silver prices are struggling to hold the crucial 30-dollar mark as investors await insights from the upcoming Fed minutes, which may influence monetary policy. Meanwhile, President-elect Trump’s tariff announcements against Canada, Mexico, and China add to market uncertainty, potentially impacting global economic stability. Key US economic data, including the PCE core deflator and durable goods orders, will also be closely monitored for further market direction.
IG
Canada's oil industry warns that President Elect Donald Trump's proposed tariffs could lead to higher gasoline prices in the US. The US imports nearly 4 million barrels of Canadian crude daily, which supports its own oil exports while fulfilling domestic demand. Energy products represent about a third of Canada's exports to the US, highlighting their economic significance.
US Treasury bonds declined as President-elect Donald Trump threatened new tariffs on trade partners, undermining gains from Scott Bessent's appointment to lead the department. Yields rose by one to four basis points across various maturities following Trump's announcement of a 10% tariff on Chinese goods and a 25% tariff on products from Mexico and Canada. The market had previously surged on hopes that Bessent could influence Trump's trade policies.
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