Stocks are higher and the Loonie is spiking after Bloomberg reports that US Senators introduce a bipartisan bill to delay auto tariffs.
As Bloomberg reports, Democratic Sen. Doug Jones and Republican Lamar Alexander today introduced the “Automotive Jobs Act of 2018,” a bipartisan bill that would delay President Trump’s recently proposed 25% tariff on imported cars, trucks and auto parts, according to e-mailed statement.
Legislation would require International Trade Commission study of U.S. auto industry, a report to Congress with policy recommendations and would block such tariffs from being applied until that report is issued.
CAD rallied most….
The peso jumped…
US Stocks limped higher… (with Facebook continuing to lead the pack ahead of earnings).
The graphic below, via Bloomberg shows why the Loonie is gaining as it exposes which nations lead in producing various components of American passenger cars, from bumpers to steering wheels.
As Bloomberg reminds us, however, Trump, of course, has veto power… so this could potential set up an interesting showdown.
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Author: Tyler Durden