The US tariff deadline expires today, with many major trading partners signed up, while a few major trading partners remain recalcitrant. Many of lesser players will be subject to imposed deals. The major US trading partners to sign deals are the UK, EU, Japan, South Korea, Philippines, Indonesia and Vietnam. China has signed an interim deal and is still involved the process of negotiations, while the rest remain subject to non-negotiated, tariffs imposed by the US. The major trading partners without a deal will be Canada, Mexico and Australia. The uncertainty will be removed later today and this, by itself, will be welcomed. The fallout surrounding the harsh EU terms continues, with wide criticism, resulting in both equity and currency market fallout. The EUR has fallen back to 1.1410, while the GBP slipped below 1.3200, overnight.The strong dollar punished the commodity currencies, only exacerbated by the lack of trade deals, with the USA. Australia and NZ will be hoping that the ‘Liberation Day’ tariff of 10% is imposed, as this is at the bottom of the scale, even for those with a deal. Political relations between Australia and the US are strained and this has damaged prospects for a trade deal, but there are signs of communications, with the recent Australian/US beef deal. The AUD crashed to 0.6430, while the NZD surrendered 0.5900, despite a visit from the FBI.
