Gold Rises as Fears Mount Over Trump's Reciprocal Tariff Plans

(March 27): US President Donald Trump suggested further tariffs would be imposed on the European Union (EU) and Canada if they work together “to do economic harm” to the US. 

In a late night Truth Social post, Trump said large-scale tariffs “far larger than currently planned” would be placed on them in such a scenario. The euro briefly pared a small gain and the Canadian dollar dipped. 

“If the European Union works with Canada in order to do economic harm to the US, large-scale tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!” Trump posted. 

Trump signed an order on Wednesday imposing a 25% tariff on auto imports, escalating a trade war designed to bring more manufacturing jobs to the US. The move sets the stage for more tariff actions next week, including promised so-called reciprocal tariffs on April 2, potentially deepening tensions with key trading partners. Other industry-specific tariffs are also in the works, including on lumber, semiconductors and pharmaceutical drugs. 

The EU is preparing countermeasures in response. France has urged the European Commission to consider using its toughest trade weapon — the anti-coercion instrument — for the first time, Bloomberg reported earlier.

Trump’s latest comments come after Canadian Prime Minister Mark Carney visited France and the UK last week on his first foreign trip to pitch a closer alliance with European allies. 

“I want to ensure that France and the whole of Europe works enthusiastically with Canada, the most European of non-European countries,” Carney said in Paris.

Source: Theedgemarkets

Source: Euronews

Source: AP

LONDON (Reuters) - Britain does not want to escalate a trade war with the United States and is working intensely with Washington to secure an exemption from tariffs, the country's finance minister Rachel Reeves said on Thursday.

U.S. President Donald Trump expanded his global trade war late on Wednesday when he unveiled a 25% tariff on imported vehicles, prompting criticism and threats of retaliation from affected U.S. allies.

"We are not at the moment in a position where we want to do anything to escalate these trade wars," Reeves told Sky News when asked if Britain would impose retaliatory tariffs against the U.S.. "Trade wars are no good for anyone."

She said an escalation of tariffs would be bad for Britain: "but it would be bad for the U.S. as well, and that's why we are working intensely these next few days to try and secure a good deal for Britain," Reeves said in an interview with the BBC.

"I recognise how important this is," Reeves added.

U.S. new levies on cars and light trucks will take effect on April 3, the day after Trump plans to announce reciprocal tariffs aimed at the countries responsible for the bulk of the U.S. trade deficit.

They come on top of duties already introduced on steel and aluminium, and on goods from Mexico, Canada and China.

Britain has hoped to avoid tariffs with the U.S., arguing that both countries report trade surpluses with each other - including goods and services - owing to measurement differences.

London is also trying to agree a tech-led deal with Washington that it hopes will potentially spare it the direct hit of tariffs on its own exports.

Source: Yahoo Finance

GBPUSD: Sell

•  GBPUSD reversed from resistance area
•  Likely to fall to support level 1.2800

GBPUSD recently reversed down from the resistance area between the resistance level 1.3035 (which has been reversing the price from October), resistance trendline of the daily up channel from January and the upper daily Bollinger Band.

The downward reversal from this resistance area created the daily Japanese candlesticks reversal pattern Evening Star which started the active wave 3.

GBPUSD can be expected to fall to the next support level 1.2800, the former monthly high from December.

Source: ACTIONFOREX