Morning from Greece.

Biden announced the increased tariffs on steel, aluminum, Semis, EVs and Solar Panels yesterday, but the market remains calm in Asia this morning. China is not exporting a lot of vehicles to the US, especially not EVs, with only Geely having some minor market impacts.

The US/Chinese trade ties within Solar, EVs and the likes are neglectable, while they are NOT in Europe. Maybe Biden’s move will lead to inflation in the US and disinflation in Europe? At least Tesla seems to celebrate that they don’t have to cut prices to defend themselves against Chinese EVs.

On the other hand, China mulls asking regional governments to buy unsold homes, which is pulling USD/CNH in the other direction despite the tariffs implementation. We will release our weekly editorial on China later today with more.

Chart 1: EU is a bigger market for Chinese vehicles (and especially EVs)