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Overnight – Liberation Day turns into Obliteration Day for stocks
Stocks finished 1% higher in the day session ahead of President Trumps “Liberation Day” announcement…. That’s when things turned nasty with the major indexes falling over 3% after market
Trumps tariffs were harsher than expected, with China being the heaviest hit.
President Donald Trump’s announcement of imposing reciprocal tariffs on imported goods to the United States. Key points include:
- Tariff Structure: A baseline tariff of at least 10% will be applied to all imported goods, with higher rates for countries that charge more on U.S. exports. For example, China, which imposes a 67% tariff on U.S. goods, will face a new tariff of 34%, in addition to existing tariffs, totaling 54%.
- Implementation: The 10% baseline tariff starts on April 5, while higher tariffs begin on April 9. Other tariffs, such as a 25% tariff on imported automobiles and auto parts, will also be implemented.
- Goals and Reactions: The tariffs aim to restore American manufacturing dominance and counter unfair trade practices. However, they are expected to trigger countermeasures from trading partners, potentially leading to a trade war. Nations like China, Japan, South Korea, and the EU have indicated plans to retaliate if necessary.
Overall, the move is intended to level the global trade playing field but has sparked concerns about economic impacts and potential trade conflicts.
This is why we have high levels of cash and are holding gold… and will continue to until Trumps circus slows
ASX SPI 8019 (+0.52%)
Despite Australia not being on the “big List” ASX investors will (as per usual) panic today on the open, then we are likely to see a recovery over the course of the day.
Prime Minister Anthony Albanese says Donald Trump’s tariffs are unwarranted, but he will not impose reciprocal tariffs on the US.
As noted in many previous morning reports, High levels of cash and a 10% holding in gold is strongly recommended
