 Asian markets traded cautiously today as investors await the long-anticipated reciprocal tariff announcement from the US, dubbed “Liberation Day” by President Donald Trump. Following the mixed close on Wall Street, risk sentiment remains fragile, with traders in clear wait-and-see mode. However, the rebound in commodity currencies overnight hints that some market participants are leaning toward a less aggressive scenario unfolding — a bet that could quickly unravel if reality disappoints. According to the White House, the tariff announcement is set to take place today, with Trump scheduled to speak at 4 p.m. ET in the Rose Garden. Rumors continue to swirl over the exact details, but there is increasing chatter that the US may impose a blanket 20% tariff on most imports, lower than a strict “reciprocal” application would suggest. That level, while significant, may be seen as a relief to markets bracing for worse. Further, reports indicate that Treasury Secretary Scott Bessent has characterized the tariffs as a “cap,” suggesting that countries could negotiate lower rates if they meet US trade demands. This strategy, if confirmed, would effectively introduce a variable rate tariff regime that could evolve through bilateral talks. However, this overlooks a major wildcard: retaliatory measures from major US trading partners, such as Canada, the EU, and potentially China, which could unleash a spiral of escalation in the weeks ahead. In any case, volatility could spike over the next 24 hours as traders digest the final scope and tone of the announcement..... |
