To The Moon

The market is digesting President Trump’s reciprocal tariffs, take effect at midnight after his announcement this morning (Wednesday 4pm US ET time) – on what Trump has dubbed “Liberation Day”.

Timing after the main Wall Street trading session and not on April fools day!

And the tariffs are no joke and include a raft of measures.

In the first part of Trump’s speech he stated, “Reciprocal. That means they do it to us and we do it to them. Very simple. Can’t get any simpler than that.”

He then outlined the tariff imbalances including tariffs by the EU on US vehicles of 10% versus the 2.5% US tariff on EU vehicle imports. He placed a 25% tariff on all foreign made automobiles specifically.

The market reaction was at first positive with S&P 500 futures up 1%.

But then 30 minutes into his speech stated that the US will place a base of 10% tariff on all countries escalated in what he called reciprocal tariffs of 50% of the average value of tariffs that other nations charge on US goods.

For example, he said with the US will impose 20% tariffs on the EU, which he said charges the US on average 39%.

Here’s the rate he said he would impose on other specific countries:

· 34 percent on China

· 26 percent on India

· 25 percent on South Korea

· 24 percent on Japan

· 32 percent on China Taiwan

· 10 percent on UK

· 46 percent on Vietnam

· 34 percent on Switzerland

· 49 percent on Cambodia

· 30 percent on South Africa

· 32 percent on Indonesia

· 10 percent on Brazil

· 10 percent on Singapore

The market turned negative on this further announcement with the Mag 7 stocks falling 2-5% while the $S&P 500(.SPX)$ $E-mini S&P 500 - main 2506(ESmain)$ spot futures falling over 140 points (down 2%) eMini Futures $Roundhill Magnificent Seven ETF(MAGS)$ down 3.7% at 11:30 NZT