Daily Market Color May 1, 2018Economic Growth Second Longest Since WWII Reprieve on Tariffs For Allies The EU, Mexico and Canada were given a one month (June 1) reprieve on the 25% steel and 10% Aluminum tariffs the Trump administration has threatened to levy. In addition, agreements were reached with Brazil, Argentina and Australia that will exempt them from the proposed tariffs. While the tariffs were introduced for “national security” reasons, the EU will argue that reasoning is not justifiable and the EU should be permanently exempt from any such tariffs. Perhaps the tariffs are part of a broader strategy for negotiations with the May 12th Iran sanctions deadline looming. In addition, Trump’s delegation, including Treasury Secretary Mnuchin, will be in China this week to address the growing rift on trade. While these are positive steps, the uncertainty created and the effect on the market can not be overlooked.