Nick Goold
President Trump has officially announced his new trade policy. Starting this week, the U.S. will begin adding new tariffs (extra taxes) on products from nearly every country. Trump says this is to make trade more fair and to match how other countries treat U.S. goods.
There are two parts to the plan: a basic tariff on all countries, and higher tariffs on countries the U.S. says have been unfair.
Financial markets have already had large moves, and the volatility is likely to last for some time — with many trading opportunities ahead.
What Are the New Tariffs?
🔹 10% Tariff on All Imports
Starting April 5, the U.S. will charge a 10% tariff on all imported goods — no matter where they come from. This includes products from friendly countries like the UK, Australia, and Brazil.
🔹 Higher Tariffs on "Unfair" Countries
Starting April 9, about 60 countries will face even higher tariffs. These countries charge more on U.S. goods or use rules that block U.S. exports. Key examples:
China: 54% total (adds 34% on top of the current 20%)
Vietnam: 46%
Thailand: 36%
Japan: 24%
EU: 20%
Cambodia: 49%
Taiwan: 32%
South Africa: 30%
🔹 25% Tariff on All Foreign Cars
Starting midnight April 3, all foreign-made cars will face a 25% tariff. This is expected to hit Japan, Germany, and South Korea the hardest.
🔹 No New Tariffs for Canada and Mexico (For Now)
These countries already face other U.S. tariffs from previous rules. They are not included in this announcement, but that could change.
How Other Countries Are Reacting
Some countries are preparing to respond:
Canada plans to give its response on Thursday.
Italy says the tariffs on the EU are unfair.
Australia says the move is “unfriendly,” but will not respond for now.
China, Japan, and the EU are considering their next steps.
The U.S. warned against retaliation. Treasury Secretary Scott Bessent said:
“If you retaliate, there will be escalation. If you sit back, we all win.”
That comment has caused more tension.
Markets Are Moving
U.S. Stocks
The U.S. stock market was closed during the announcement, but futures dropped right after:
Dow futures: down over 2%
S&P 500 futures: down over 3%
Nasdaq futures: down over 4%
The market was surprised by how high some of the tariffs were. Traders are now watching how other countries respond. That could cause more market moves in the coming days.
Short-term traders may find both buying and selling opportunities. Medium-term traders may want to wait for a bounce to sell or buy weakness.
Japanese Stocks
The Nikkei 225 is down 3% today, and 7.5% over the past week.
Japan depends on exports like cars and electronics, which are now facing higher U.S. tariffs. On top of that, the yen is getting stronger, which hurts Japanese companies that sell overseas.
The Nikkei recently hit resistance near 40,000 and failed to break higher. Now, with both trade pressure and currency pressure, more losses are possible.
Nikkei 225 Daily Chart
USD/JPY
The yen is rising as traders look for safer assets. USD/JPY dropped below 148 and is now aiming for 146.50, the 2025 low.
It’s hard to predict what tariffs will do to currencies, so it’s better to follow short-term trends and stay flexible.
Gold
Gold has hit new all-time highs, and it continues to attract buyers. Gold thrives during uncertainty — and with trade risks rising, many investors are using it as a safe haven.
It’s important to remember, though, that gold has already had a strong run. The trend is still up, but that also means a pullback could happen at any time. Traders should keep tight stops in case of a reversal, but also be ready to hold winners if the trend keeps going.
Buying dips is still a good strategy, but it’s also smart to look for profit-taking or even shorting opportunities if momentum slows down. This is a time to stay alert and manage risk carefully.
Bitcoin
Bitcoin moved higher before the announcement but dropped after Trump’s speech. It is now heading toward support at $80,000.
Even though some view Bitcoin as a hedge, it still acts like a high-risk asset when markets are stressed. If it breaks $80,000, it could drop more — but some traders may also look to buy near support.
What Traders Need to Watch Now
This isn’t over — it’s just the beginning. Trump may still change the tariffs, raise them more, or make exceptions. That means things can shift fast, with plenty of risk and opportunity.
Here’s what to focus on:
1. Expect big moves
Markets are reacting to headlines — not logic. Prices can jump or fall sharply in minutes, even with no clear reason. That means traders should expect volatility to stick around, especially during press briefings, global responses, or sudden tweets.
Don’t try to catch every move. Wait for clean setups, and don’t chase the noise.
2. Watch Trump’s tone
The details of tariffs matter — but how Trump speaks about them matters even more. If he sounds aggressive, markets may sell off. If he softens or offers exemptions, we could see a bounce.
Tone changes often come before policy changes, so listen closely to language, not just numbers.
3. Watch for retaliation
The biggest market driver next might be how other countries respond. If China, Japan, or the EU hits back with their own tariffs, that could lead to another round of selling — especially in stocks that depend on exports.
Follow developments out of Asia and Europe closely. These headlines may hit outside U.S. hours.
4. Stay flexible
Tariffs can be raised, paused, or canceled with a single statement. Don’t lock into one opinion or bias — be ready to pivot.
Short-term markets are often irrational, especially in uncertain times like this. If you’re wrong, get out quickly. If you’re right, let the trade work.
5. Protect your capital
This market will give plenty of trading opportunities — but you don’t need to catch them all. Only enter when you have a strong view and feel confident in your setup.
Use stops, stay disciplined, and take profits when they come. Surviving is more important than being right. If you stay patient and manage risk well, the next big trade will come to you.
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