Trump is stirring things up again!

Just when everyone thought the tariff storm had calmed down, he suddenly announced: no more individual talks with various countries, a new uniform global tariff will be imposed! The specific tax rate has not yet been announced, but news is expected in two to three weeks. Trump's reasoning this time is quite simple; negotiating with over 150 countries one by one is too troublesome, a uniform tax is more convenient.

Currently, rumors suggest the new tariff could be 10%, which is three times higher than the 2024 rate. In the future, he may also push for reciprocal tariffs, meaning whatever tax you impose on me, I will impose the same on you. Although the tariff buffer period ended in July, the market remains relatively calm, believing that Trump won't be too harsh.

However, compared to tariffs, the bigger market impact is Moody's downgrade of the US credit rating!

Moody's announced after the US stock market closed: the US sovereign credit rating has been downgraded from the top-notch Aaa to Aa1.

This means that the US has lost its AAA rating from all three major rating agencies (S&P, Fitch, Moody's), marking a complete farewell to perfect credit.

This is not the first downgrade for the US; looking back at history:

2011: S&P took the lead, downgrading from AAA to AA+.

As a result, on that day, the US stock market plummeted, with the Dow Jones index crashing by 5.55%, and the S&P 500 and NASDAQ suffering even greater losses, down 6.66% and 6.90% respectively.

2023: Fitch followed suit, downgrading to AA+.

This time the US stock market did not fall much, with the Dow down 1%, S&P 500 down 1.4%, and NASDAQ down 2.1%.

In 2025, this time: Moody's took action, and the market has not yet reacted; attention should be focused on the trend after the opening on Monday.

But it should be noted that the rating downgrade will increase the cost of borrowing for the US, which may put pressure on US stocks and other risk assets.