Trump’s Trade War Knockout: Markets Brace for April 2nd Tariff Bombshell

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US Financial Markets are shivering thinking of April 2nd - the day US President Trump is waiting to punch them nice as he celebrates America's Trade Liberation Day, where US would impose reciprocal Tariffs to counter Tariffs other countries levy on US products they import!

Looks like Trump has warmed up for the big day as he has announced 25% Tariff on auto sector, on automobile and automobile component exports from other countries. This should get activated by April 3rd, if he does not reverse his decision which he is known to have done this year.

Automobile stocks would sure have got hit down because of this news.

Trump expects US to earn revenues amounting to $100 billion out of Tariff collections. However, it's certain that US customers have to pay a 1000$ more to buy cars now. This is because US car manufacturers import automobile components from Mexico, China and India, and Tariffs would be charged for these imports.

Last year, US import of Automobile components amounted to $89 billion, as US procured $36 billion worth of auto materials from Mexico suppliers, $10.1 billion from Chinese suppliers and $2.2 billion worth of components from Indian suppliers.

So, April 2nd is a big day for Global Financial Markets, all expecting to shed valuation more due to Trump's high Tariff announcements!

As the day approaches, I have been depicting it's possible repercussions through my graphics, explaining the changing economic phenomenon, while writing an article to explain the theme conveyed in my illustration.

Checkout my earlier post based on this graphic.

As soul of wealth is likely to leave risk on financial assets and go into safehaven assets - Gold, USD, Euro on April 2! The reason my readers can guess, else read the article and find out!

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