Now that’s what I call Tariffs
The title of this briefing is an homage to that (n)ever-popular publication of CDs (formerly vinyl) that seemed to be everywhere when I was growing up. Containing the ‘best’ hits of a particular year, you never seemed to be far from a ‘now that’s what I call’ CD (or a Woolworths)..! Why that’s an appropriate title and its link to last night’s tariff episode is thus: in the modern day, both seem a total anachronism. They stick out like a sore thumb against the modern world. An initial assessment of the tariffs estimates that last night’s announcements cast the US tariff system back to levels not seen since the 1930s and before that the turn of the 20th century.
Trump fulfilled his election promise of a base line of tariffs of 10% universally. POTUS did eventually also introduce country specific tariffs for those nations he felt held the most punitive trading terms with respect to the US. Those notably include China (34%) and Europe (20%). On average, marginal US imports will now face an import tariff of approximately 20-25% on a trade weighted basis. Canada and Mexico, the target of earlier rounds of tariffing, were spared any further punishment yesterday. The EU, which had promised to respond promptly if not immediately to any excessive tariffs levied against it, has postponed any retaliatory measures until mid-April.
The market reaction was ugly. The net impact on the US Dollar was significant weakness despite commodity, emerging market FX and the Euro facing their own selling pressures. There’s no doubt that yesterday’s announcement has proved in hindsight, and was expected by many with foresight, to be the risk event so far of 2025. The Yen was the main benefactor of that rotation away from risk with CHF picking up some residual demand today. In a vacuum, last night’s decision should be USD positive, however, US growth and inflation fears are in focus in the absence of any fresh measures to support the US economy.
Discussion and Analysis by Charles Porter
Related Insights
Daily Brief – Forgiven
Charles Porter
Tue 10 Mar 2026
Forgiven Even with an equity correction underway at the start of yesterday’s session, it still appeared that the market was under-pricing the risk of a protracted conflict in the Middle East. FX and fixed income asset classes had reacted more severely with stronger defensive bids into currencies including the Dollar and Franc, but still the […]
Daily Brief – Fade America
Charles Porter
Thu 26 Feb 2026
Fade America There have been times during Trump’s second term that have had markets and financial commentators alike calling for an era of ‘sell-America’. Sell-America is the notion describing a scenario in which investor sentiment sours towards the US so much so that valuations across US assets decline. This is a unique scenario because many […]
Daily Brief – Sell first, question later
Charles Porter
Thu 5 Mar 2026
Sell first, question later The jury is still out on whether the initial “sell everything” reaction to a sudden increase in geopolitical risk has concluded. Certainly, some volatility remains which serves as an indication that trading conditions have not calmed whilst markets continue to question how this chapter of US military intervention ends. Emerging markets […]
