TARIFFS: Trump Set To Revoke China De Minimis Exemption: Reuters
Reuters is now reporting a slightly different angle to CBS earlier on low-value Chinese import tariffs - Reuters saying the de minimis exemption (for goods under $800) will be eliminated outright (see below), while CBS's source said there would be a $25/package fee on Chinese imports (presumably in place of eliminating the de minimis exemption which has proven logistically difficult to implement).
- Recall that the administration had decided to eliminate the de minimis exemption back in February but had to put it on hold as the postal service couldn't deal with inspecting and imposing tariffs on the large volume of incoming packages from China.
- The flat fee would appear to be a way of simplifying the process while dampening demand for low-value Chinese goods ordered by individuals.
- Reuters: "The Trump administration is considering revoking tariff exemptions for low-value shipments from China as part of Wednesday's tariff announcement....U.S. Officials had paused the decision given logistical issues complicating inspection of millions of the low-value shipments. "They figured it out," the source said, "De minimus [sic] is being stripped from China."
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US: FED Reverse Repo Operation
RRP usage retreats by nearly 50% to $119.987B from $234.442B on Friday's month end. Compares to $58.770B (lowest level since mid-April 2021) on February 14. The number of counterparties falls to 32 from 50 prior.
US: Trump To Make "Investment Announcement" Shortly
US President Donald Trump is shortly due to make an “investment announcement” at the White House. LIVESTREAM
- Trump is expected to announce a USD$100 billion investment from TSMC. See earlier bullet: US: Trump To Announce $100B TSMC Investment
- Trump has previously appeared alongside CEOs of SoftBank, OpenAI, Apple, and DAMAC to announce private investment projects, touting them as wins for his administration’s business-friendly policies.
- Trump may also highlight a recent decision by Honda to make its next Civic hybrid vehicle in the US rather than Mexico, with Reuters noting, “the move to make the model in the US would avoid potential tariffs on one of its top-selling car models.”
GBPUSD TECHS: Monitoring Support
- RES 4: 1.2880 2.0% 10-dma envelope
- RES 3: 1.2811 High Dec 6 ‘24
- RES 2: 1.2767 50.0% retracement of the Sep 26 ‘24 - Jan 13 bear leg
- RES 1: 1.2716 High Feb 26
- PRICE: 1.2710 @ 16:23 GMT Mar 3
- SUP 1: 1.2538 50-day EMA
- SUP 2: 1.2440 Low Feb 13
- SUP 3: 1.2333 Low Feb 11 and a key support
- SUP 4: 1.2249 Low Feb 3
A bullish trend condition in GBPUSD remains intact - for now - and this suggests the latest pullback is likely a correction. Note that moving average studies have recently crossed into a bull-mode position, highlighting a potentially stronger bull cycle. Initial firm support to watch is 1.2538, the 50-day EMA. A resumption of gains would open 1.2767, the 50.0% retracement of the Sep 26 ‘24 - Jan 13 bear leg.
