The Day at a Glance | Jun 6 2022

The Top

*US Secretary of Commerce Gina Raimondo acknowledged that withdrawing tariffs from Chinese products could help ease inflation.

*Quick count gives Morena victory in 4 of 6 states in which elections were carried out this weekend.

*In Mexico, gross fixed investment increased 2.9% during March (4.1% annual); private consumption improved 0.7% (8.5% annual).

*Saudi Arabia increased crude oil prices in Asia, a positive sign regarding demand for energy in the region.

*India starts conversations to increase crude oil imports from Russia.

*COVID-19 restrictions lifted in Peking.

Economic environment

United States considers eliminating tariffs on Chinese products. According to statements made by the US Secretary of Commerce, Gina Raimondo, President Joe Biden has called on his team to check the possibility of withdrawing some tariffs implemented on Chinese goods during the Trump administration in order to fight inflation. Raimondo said that these measures are already being assessed, especially tariffs placed on consumer goods, and not for industrial goods (such as steel and aluminum). Nevertheless, the Biden administration`s stance differs with respect to this approach as some consider that this could not have a considerable impact on inflation and it would only reduce the United States` negotiation power with China. President Biden is also considering eliminating tariffs placed on solar panel imports from Southeast Asia (Cambodia, Taiwan, Thailand and Malaysia) for at least 24 months and increase the national productive capacity in order to boost one of the key industries involved with energy transition that has been affected by tariffs placed on Chinese goods.

Morena wins elections. According to quick counts carried out in 6 states in Mexico where Governor elections took place this weekend, Morena beat the opposition in 4 states. Morena seems to have won in Quintana Roo, Oaxaca, Hidalgo and Tamaulipas – states that used to be governed by the PRD, PRI and PAN. The PAN would keep Governor positions in Aguascalientes and Durango. With this, it`s estimated that Morena will govern close to 54.8% of the country`s population as it holds 20 of the nation`s governorship positions. The largest loser was PRI, which lost Hidalgo, one of its most important strongholds since 1933.