Digest | 2 April 2025
- Edward von der Schmidt
- Apr 2
- 5 min read
Updated: 5 days ago
Wednesday's risk asset rally dissipated in overnight trading as the announcement of President Trump's "reciprocal" tariff regime brought effective tax increases well above expectations. A 10% baseline levy on all imports to the US was overshadowed by substantially greater tariff increases for 60 countries, with limited exceptions and Asia particularly hard-hit. While USMCA-compliant goods exemptions will continue indefinitely, 25% auto-related tariffs will go into effect as will 25% tariffs against Mexico and Canada under the auspices of fentanyl-related executive authority since challenged by the Senate. Even as global recession fears mount, Federal Reserve officials appear poised to hold the line as inflation remains their primary concern.