The world economy faces the shock wave of "Liberation Day"

57
"Non-discriminatory reciprocal tariffs", the world economy faces the shock wave of "Liberation Day"

The US President made a shocking statement on Air Force One, announcing that the reciprocal tariff policy to be announced on April 2, "Liberation Day", will cover all trading partners, completely breaking the previous expectation of only targeting 10-15 major trade deficit countries. This policy shift marks the entry of US trade protectionism into a new stage, which may trigger a seismic reconstruction of the global trade system.

As "Liberation Day" approaches, many key issues remain unclear. The scale of policy implementation is still unclear. Will it really achieve "100% reciprocity" or retain room for adjustment? Will temporary exemption clauses similar to steel and aluminum tariffs be established? These issues are all affecting the nerves of the global market. The opening of US stocks on Monday may fluctuate violently, and VIX panic index futures have shown signs of a surge in hedging demand.

Safe-haven demand will become the main driver of gold prices in the short term. This unprecedented global tariff policy will significantly increase market uncertainty, especially when the policy is officially implemented, it is likely to trigger global stock market fluctuations and capital safe-haven demand. Historical experience shows that during the 2018-2019 trade war, gold prices rose by about 15% due to safe-haven inflows. Considering that the policy coverage this time is wider, the impact on market sentiment may be more severe.
XAUUSD XAUUSD GOLD GOLD XAUUSD XAUUSD

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.