SPX500 – Daily Chart
The SPX500 has dropped below recent support and could make a further move lower to the 5,389 level, last seen in September 2024.
US President Donald Trump has unveiled his “Liberation day” tariffs on Tuesday, saying jobs and factories will “come roaring back” to the US
“April 2, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed and the day that we began to make America wealthy again,” Trump said.
“For decades, our country has been looted, and plundered by nations near and far, both friend and foe alike. American steel workers, auto workers, farmers and skilled craftsmen — we have a lot of them here with us today. They really suffered gravely”.
“In a few moments, I will sign a historic Executive Order, reciprocal tariffs on countries throughout the world. Reciprocal. That means they do it to us and we do it to them. Very simple. Can’t get any simpler than that.”
Trump said the reciprocal tariffs will bring “stronger competition and lower prices for consumers” in the country.
Specifically, the President announced a baseline tariff rate of 10% for all countries (below the 15% consensus and 20% worst case) beginning April 5th. He also confirmed the 25% tariff on all auto imports.
Asian countries on the list included China, Thailand, Vietnam and Taiwan.
“If you want your tariff rate to be zero, then you build your product right here in America, because there is no tariff if you build your plant, your product in America,” Trump said.
“Likewise to all of the foreign presidents, prime ministers, kings, queens, ambassadors and everyone else who will soon be calling to ask for exemptions from these tariffs, I say terminate your own tariffs, drop your barriers, don’t manipulate your currencies”.
The stock market fell as traders looked at the fallout from global trade volatility.
Adam Hetts, global head of multi-asset at Janus Henderson, commented:
“Eye-watering tariffs on a country-by-country basis scream ‘negotiation tactic,’ which will keep markets on edge for the foreseeable future”.
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