ForexLive Asia-Pacific FX news wrap: Trump announces 25% tariffs on imported autos

• Daiwa cuts Tesla price target to $300, citing margin pressure and demand concerns
• Japan warns of “significant impact” from new U.S. tariffs
• European Central Bank's Buch, de Guindos, Escrivsa, Schnabel all speak on Thursday
• China to extend stamp duty relief for offshore trading through end-2027
• Bank of England Monetary Policy Committee member Dhingra speaks on Thursday
• The USD has reversed its earlier Trump auto tariff gains, EUR/USD back above 1.0760
• Morgan Stanley revised its USD/yuan projection to 7.35 by mid-2025 (prior 7.5)
• China data: January - February Industrial profits -0.3% y/y (prior -3.3%)
• Goldman Sachs sees further upside for China stocks, but warns of near-term headwinds
• PBOC sets USD/ CNY reference rate for today at 7.1763 (vs. estimate at 7.2728)
• China’s major banks are speeding up (bad) property loan write-offs
• ICYMI - China’s life insurers could unleash powerful new gold demand
• Tokyo Exchange transport index stocks slammed lower after Trump's new added 25% tariff
• ICYMI - Dallas Fed Energy Survey uncertainty index highest in five years
• Trump said he may reduce tariffs on China to help facilitate TikTok US operations sale
• UBS outlined three reasons to favor U.S. artificial intelligence firms over those of China
• Nomura: Retains Long JPY Bias - tariffs, BOJ, inflation
• Trump has allowed a one-month tariff exemption for auto parts imports
• Westpac sees April RBA meeting as ‘dead rubber’, still eyes May rate cut
• Recap of Trump's 25% auto tariff on foreign-made cars starting April 2nd
• Goldman Sachs lifts gold forecast. Could get above US$4200 by end 2025 in extreme case
• The USD has risen after Trump's announcement of 25% tariff on all autos not made in USA
• Trump slaps a 25% tariff on all cars not made in the USA
• ICYMI - Barclays slashed thier S&P 500 forecast
• ICYMI - The EU has asked for households to stockpile 72 hours of food amid war risks
• Forexlive Americas FX news wrap 26 Mar: Tariffs, inflation concerns rattle markets.USD up.
• Gamestop says it'll raise USD1.3bn, a portion will be to buy Bitcoin
• US equity close: Sell now, wait for the news on auto tariffs later
• Trade ideas thread - Thursday, 27 March, insightful charts, technical analysis, ideas

A summary of the measures announced by Trump:

• a new 25% tariff on all cars and light trucks not manufactured in the United States

• will be on top of any existing tariffs

• the tariffs will remain in place throughout his 4-year term

• auto tariffs are set to take effect on April 2nd

• tariff collections begin April 3rd

• the administration is seeking approval for a tax deduction on interest payments for car loans—if the vehicle is made in America

• parts made in America but assembled into foreign-made cars will not be subject to tariffs

There are more fine details, but those above cover the main points.

The market response was to send the US dollar a little higher after the news hit. Soon after Globex reopened for trade and US equity index futures traded a little lower.

Japanese auto exporters are, of course, going to be hit hard by the new tariffs. Auto firms on the Tokyo exchange fell heavily.

EUR/USD traded to lows around 1.0734 but soon recovered strongly. As I post we’ve bounced to circa 1.0780. Yen recovered also, USD/JPY hitting highs around 150.60 before dropping back to lows arpound 150.10 and its not too far above there as I update.

GBP, CAD, AUD and NZD have all risen smartly against the USD too.

Gold have been a performer too, its back above US$3030 as I post.

Apart from the tariff announcement news and data flow have been light.