Trump Reinstates Tariffs on Brazil, Argentina | China Imposes Sanctions on US NGOs
Published December 2, 2019
This morning, Trump announced that he will immediately reinstate tariffs on steel and aluminum imports from Brazil and Argentina. Trump suggested that the two countries are purposely devaluing their currencies in order to gain an economic advantage. In typical Trump fashion, the US President also took the opportunity to repeat his disdain for the Fed and their monetary policy stance.
China has sanctioned US Human Rights NGOs operating in Hong Kong and suspended US Navy ship port visits within the city. The sanctions come in response to the US bills in support of Hong Kong protesters, but the markets are viewing the news as positive given that they did not take any measures to directly undermine US trade talks. China suggested they may take further action, but do not appear interested in jeopardizing a potential phase one deal just yet.
The economic calendar is light today as traders return from US Thanksgiving. The major announcements in North America today include manufacturing PMI from both Canada and the US. The US ISM Manufacturing PMI has had readings below 50 in each of the last three months, which puts the sector in contraction territory. Meanwhile, Canadian Markit PMI readings have remained expansionary and shown improvements in September and October, but there is worry that the US manufacturing sector struggles could make there way north heading into 2020.