What happened last night?
The market seems to be in terrible conditions from yesterday’s investment plan announced by President Donald Trump, as the stock market, bond market, and crypto are all falling like there is no way back. Oil prices also dropped, except for gold prices, which are rising ahead of uncertainty. This is also supported by a higher VIX index that indicates a rising fear from investors.
All of these are the result of:
- An official statement of imposing levies duty on Canada and Mexico with a 25% tariff and an additional 10% on China (total 20% in two months) as of March 4, 2025. And strongly reaffirming that “there is no room for negotiation.” → The only thing they can do is either respond with tariff retaliation or build in production in the US to avoid tariff.
- In fact, both TSMC and Honda have already made a big investment in the chip factories and manufacturing in the US. Not only is more investment coming, but this also creates more job opportunities for US citizens as well.
- Yet Trump also brings up the possibility that he might consider a free-trade agreement with Argentina.
- Trump also mentioned putting tariffs on agriculture imports on April 2nd, which would provide more hope for domestic consumption.
Looking Forward:
- Despite the Trump administration officially suspending financing support for Ukraine’s military aid, Trump cited that he will discuss further about rare minerals with Ukraine tonight, which he also referred to as a big announcement tomorrow from last night’s post. A deal is not done yet.
- Plus, WH Press Sec. Karoline Leavitt also stated that “Trump will talk about tax cuts tomorrow” along with the economic agenda tonight.
- The response from Canadian Prime Minister Justin Trudeau is that he will impose a retaliatory tariff.
- Trump will hold a “crypto summit” on Friday, hinting at a positive signal for the crypto market.
