US President Donald Trump has cancelled the order to impose 5 per cent tariffs on all Mexican imports that were due to come into effect today, 10 June. The decision came after negotiators reached a deal on measures to stem the flow of migrants from Mexico to the US.
Trump told Mexican President Andrés Manuel Lopez Obrador that as long as Mexico enforces the deal on immigration, “this will be a very successful agreement for both the US and Mexico”. However, Trump warned that tariffs remained an option, if he deems his trading partner is not meeting his demands. Trump had threatened to increase the tariffs by 5 per cent a month until they reached 25 per cent in October.
The Dollar strengthened against its peers, with the Euro and the Pound both losing 40 basis points in early trading and falling away from multi-week highs.
The Conservative Party leadership race and the whittling down of the 11 candidates to the final two officially starts today. According to the recently changed rules, any MP with less than eight MPs supporting them will fall at the first hurdle. So far, Boris Johnson and Michael Gove led the way with 42 and 29 backers, respectively.
Today the UK will release the latest industrial production and GDP growth data for April. These data are expected to show that production and growth slipped after the country missed the original 31 March Brexit deadline and firms had been stockpiling over fear of a no-deal outcome. Investors will look for signs that this slip was not as bad as anticipated, which could give some respite to the weak Pound.
Trump’s trade war starts to take hold
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