Citi Report Predicts Three Main Scenarios and Market Impact for US Tariff Policy Day on April 2
March 30, 2025 09:48 Market News
According to Wall Street Insights, Citi has predicted three main scenarios for the US tariff policy day on April 2 in their latest report.
First, only mutual tariffs are announced, in which case the market reaction is relatively limited;
Second, mutual tariffs plus value-added tax (VAT), which could cause the US dollar index to immediately rise by 50-100 basis points, and global stock markets may also decline;
Third, in addition to mutual tariffs and VAT, there are also sector-specific tariffs, in which case the market reaction may be even more severe. The market reaction on April 2 will largely depend on the timing of the tariffs, especially sector-specific tariffs and the speed of other countries' responses to mutual tariffs.