Trump's first wave of tariff letters designated new tax rates for Japan, South Korea, and 12 other countries, effective August 1. It's the same formula, just changing targets to exert pressure —
This time, the main focus is on Japan and South Korea, telling you that you can continue to make chips and cars, but it's time to pay the protection fee.
When push comes to shove, allies are the first to be cut. The mission of these two little brothers now is to make America great again!
The tax rate is just a number; it has no credibility and is purely a test of each country's bottom line. If no agreement is reached by August 1, it will be delayed again.
Now, the king's three-pronged policy has basically taken shape —
1. Why the rush to impose tariffs globally? To increase fiscal revenue.
2. Why repeatedly pressure Powell to cut interest rates? To reduce U.S. debt interest expenses.
3. Why push the Big Beautiful Act to slash welfare subsidies? To lower fiscal expenditure.
However, the current capital market seems determined to bet on Trump’s TACO, and I personally feel that the sentiment is a bit one-sided. I won’t take action this month unless there’s an excellent opportunity!
A madman can win money, but only a rational person can survive until the end.
