Heads up for a EUR risk ( … and MXN) this week as US expected to decide on EU auto tariffs

A bit of an ICYMI but also with a little extra for MXN traders.

The US administration is likely to make a decision on tariffs on European union auto imports this week. Commerce Secretary Sleepy Wilbur Ross said an announcement could come as early as May 18 (i.e. over the weekend …. great ….).

Slapping on more tariffs is not a foregone conclusion, but if recent history is anything to go by the risk is there.

A brief snippet from Société Générale:

• if the US administration decides to raise the level of tariffs on EU cars from the current 2.5%
• Exports of German cars ex-parts are worth around €35bn per annum.
• The MXN would not be unscathed as a large part of German assembly destined for the US market is based in Mexico