Trump's reciprocal tariffs impact global markets, significant market volatility risks next week!
Trump announced the implementation of reciprocal tariffs next week, targeting trade surplus countries such as Europe, Southeast Asia, Vietnam, Japan, and South Korea.
Reciprocal tariffs are a retaliatory measure, triggering a market reaction of 'one rise and five falls': the US dollar rises, while US bonds, US stocks, commodities, and cryptocurrencies all decline, with gold potentially benefiting as a safe haven.
Behind the tariffs is a misunderstanding of trade inequality; the US trade deficit is not necessarily a bad thing but rather a product of its economic structure and the circulation of the dollar.
Japan has fallen into 'the lost thirty years' due to its trade surplus with the US; a trade surplus can be an economic trap, and this action by the US is a suppression of emerging markets.
Next week, the tariff game will play out repeatedly, increasing market volatility. Old Liu reminds cryptocurrency friends to remain highly vigilant against risks.
Stay updated on market dynamics, operate cautiously, and guard against risks!