A Tariff for a Tariff

• Trump has followed through on his threats, reinstating aggressive reciprocal tariffs on China.
• Market sentiment remains rattled by the severity and potential duration of these tariffs, leading to significant swings across equity and bond markets.
• There are early signs of trade negotiations with Japan, South Korea, and Taiwan, with Trump claiming a “great deal” is close with South Korea.
• The U.S. confirmed it will impose a 104% tariff on many Chinese goods, while the EU is yet to formally respond.
• The current high level of uncertainty is expected to stall business investment and deal flow, as market participants await clarity before re-engaging.