Huawei played down the impact of the 90-day delay in US operations that they were granted by the US government, saying that this would not affect their business in any way. The firm continue to insist that the they unjustly fell under the millstones of the broader trade war between the two powers.

The decision to delay, in a sense, became a “counter news” to the negative trading headline on Monday, according to which the Chinese side “doubts” about feasibility of the trade deal. This caused a jump in gold, but the bears successfully impose their game on Tuesday.

“This decision does not change the fact that Huawei continues to be treated unfairly either”, said Huawei.

The Trump administration initially planned a two-week delay but ran into bureaucratic problems to implement a shorter “reprieve” for the company.

The US Department of Commerce included Huawei in the “Entities List” in May, concluding that the company was involved in activities that run counter to the interests of US foreign policy. Huawei's statement that acting in this way the United States “saws the branch it sits on” partially turned out to be true based on the decision to grant the delay.

As for import tariffs on cars, the time has lapsed for the application of Section 232, so Trump will have to look for other ways if he wants to increase pressure on the EU and Japan. On Monday, a relevant court decision came out stating that the president forfeited the authority to use the amendment. Recall that Trump initiated an investigation in May as part of Amendment 232, which allows US to protect the industrial base with import tariffs. Tuesday was the deadline for imposing tariffs on car imports from the EU, South Korea, and Japan.

If Trump wants to again look for negotiating leverage in car tariffs, he may refer to the IEEPA (International Emergency Economic Powers Act) statute, which does not require detailed justification for slapping tariffs. However, here Trump can meet an obstacle from international body - the WTO, which defines threats to national security, i.e. reasons for the introduction of tariffs.

The main conclusion is that the risks of the main line of confrontation with the EU and Japan leave the market radar for some time which is bullish for the markets.

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