NY Open – President Trump and the Order of Tariffs
By Varshi Karamsetty
Tariff risks are back after multiple developments overnight. After the Senate confirmed Scott Bessent as the next Treasury Secretary, FT reported that Bessent was backing gradual 2.5% universal tariffs (including a monthly increase) citing people familiar. President Trump said he wants universal tariffs ‘much bigger’ than 2.5%, though didn’t offer an exact number. Trump also suggested tariffs on metals, semiconductors and foreign computer chips. USD reversed losses, and the likes of EUR, AUD, CNH are all weaker. After >-2% underperformance in MXN, spot trades more stable. US equity futures drift higher, though many earnings risks ahead, with tech megacaps reporting Wednesday after the close.
Watch out for US data in the form of durable goods at 08:30 EST and Conf. board data at 10:00. For the latter, the labor market differential, which has been slowly rising, will be important. We expect no changes for the HUF and CLP rate decisions at 08:00 and 16:00 EST.
