US trade update - Nomura

Analysts at Nomura offered their trade update.

Key Quotes:

"In an interview with the WSJ, Commerce Secretary Ross indicated that the Section 232 report on auto imports and their effect on national security may be delayed beyond August. In explaining the delay, he noted ongoing trade discussions with Canada, Mexico and the EU."

"Taken altogether, this lowers somewhat the near-term risk of the administration imposing auto tariffs within the next few weeks."

"However, if NAFTA renegotiations falter or the US cannot reach a more concrete trade deal with the EU (relative to the outline provided by EC President Juncker on 25 July), it is possible that the Commerce Department will seek to expedite the review process once more. "