Wilbur Ross looks to negotiations to ease trade dispute with EU – FT

Quoting the recent interview for its newsletter Trade Secrets, the Financial Times shares the news that the United States’ (US) Commerce Secretary Wilbur Ross has floated new talks with the EU as an alternative to imposing tariffs on automotive imports next month. The news also cites Commerce Secretary Ross as optimistic about the US-China trade deal.

Key quotes

“President Donald Trump could choose “some other form of negotiation” as a possible path in the face of the administration’s controversial conclusion that automotive imports are a threat to US national security.”

“One [option] would be to say, ‘I’m just not going to do anything’, the second would be to impose tariffs on some or all [countries] . . . the third might be some other form of negotiation.”

“Mr. Trump “has quite a lot of alternatives as to what he can decide to do, and I don’t think we should prejudge what the conclusion will be”.

“You never know with paperwork, you can always run into a glitch at the last minute. But I’d say [the chances] are better — far better than 50/50 that it’s signable on or about the time of the Chile conference”

“China was “following through in good faith on the promises that they made” earlier this month to press ahead with big purchases of US farm products.”

FX implications

While no major market reaction could be witnessed to the news, this could help recede the latest risk aversion wave and might renew the strengths of the Dollars of Australia, New Zealand and Canada.