Daily Newsletter 4/2/25
Good morning.
Today, April 2, 2025, marks what President Donald Trump has termed "Liberation Day" in the United States. This day is significant because Trump is set to announce a series of new tariffs aimed at rebalancing U.S. trade relationships with other countries. The tariffs are part of a broader strategy to reduce America's reliance on foreign goods and address what the administration perceives as unfair trade practices.
Global stocks are mixed as investors await clarity on the tariffs. U.S. stock futures point lower, with the Dow and S&P 500 under pressure, while gold remains high as a safe-haven asset.
The specifics of the plan remain somewhat unclear, however we believe that the recent developments will have a profound impact on the market, which we have been closely monitoring.
We recognize that Trump is striving to establish a new global economic and trade framework, and we have adjusted our long-term investment strategies accordingly. Additionally, we are navigating these volatile times by intensifying our tactical trading efforts to capitalize on short-term market opportunities.
Key Points About "Liberation Day" Tariffs:
Reciprocal Tariffs: The U.S. plans to impose tariffs that match those imposed by other countries on American goods.
Targeted Countries: The tariffs are expected to target between 10 to 15 nations, referred to as the "Dirty 15" by Treasury Secretary Scott Bessent. These countries are believed to significantly contribute to the U.S. trade deficit.
Tariff Rates: There are discussions about imposing an average tariff of about 20% on products from nearly every country, rather than targeting specific industries or nations.
Auto Tariffs: A 25% tariff on auto imports is scheduled to begin on April 3.
Economic Impact: The tariffs could lead to higher consumer prices and potentially escalate global trade tensions, risking economic slowdowns.
The announcement is scheduled for 4:00 PM EDT from the White House Rose Garden.
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