Here’s the latest on Trump’s new tariffs (“TrumpTariffs”) and how markets are reacting today:
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📉 Markets and Trading Impact
1. Proposed 55% Tariffs on Chinese Goods
According to today’s updates, Trump has announced that new U.S.–China tariffs could total 55%, pending final negotiations and framework approval .
A tentative agreement reportedly includes 55% import duties on U.S. goods and a 10% reciprocal rate from China .
2. Global Market Volatility
These developments have sparked sharp swings in equity futures, with S&P‑500 and Nasdaq futures absorbing early losses. The specter of additional tariffs is already putting pressure on risk assets .
Historically, similar tariff escalations have triggered brutal market corrections. In April, the S&P‑500 dropped ~20% from its peak, briefly entering a bear market amid tariff announcements .
3. Currency and Bond Market Reaction
The U.S. dollar weakened nearly 6% YTD after similar tariff news, while investors sought shelter in bonds—driving 10‑year yields from ~4.8% down to ~4.04% .
In past episodes, tariffs triggered swings in currency markets (e.g., yuan, euro, peso) and pushed investors toward U.S. Treasuries .
4. Sector-Level Drag
Industries heavily reliant on imports—like manufacturing, autos, electronics, and metals—have been flagged as potential tariff losers .
With rights and reciprocal customs duties already high, new tariffs would weigh on corporate margins and earnings growth .
