Good morning. Here's what happened overnight and what you need to know today.
1.
Liberation Day: Markets reeled as Donald Trump prepared to announce sweeping new tariffs on a vast number of countries with duties to take effect “immediately” following a Rose Garden announcement. US stocks seesawed, with the S&P 500 rising 0.3% after earlier losses, as investors braced for Trump’s tariff announcement. The so-called “reciprocal” tariffs are designed to match levies and trade barriers imposed on US goods by other nations. Reuters noted the White House had not yet published the official notice required before the tariffs can take effect. The structure remains unknown, though financial media report the administration is considering double-digit rates for many countries, with possible exemptions through deals. These come on top of a previously announced 25% tariff on auto imports, set to begin Thursday (Friday AEDT). Meanwhile, the European Union is preparing emergency support for affected sectors but won’t retaliate immediately, instead planning a negotiating “term sheet” with the US, Bloomberg reported. Goldman Sachs said Australia should expect “very modest” trade impacts, citing limited US tariff exposure and resilient China demand. (Bloomberg)(Reuters)(WSJ)
2.
Trade tensions: China’s top economic planning agency is restricting local companies from investing in the US as trade tensions between the two nations spiral. Bloomberg reports that several branches of the National Development and Reform Commission have been told to pause registration and approvals for Chinese firms hoping to invest in the US. The move could be a strategy to increase Beijing’s leverage during trade negotiations with the US. Existing US investments by Chinese corporations and financial products (like US treasuries) do not seem to be included in the suspension, and sources didn’t specify how long the pause is set to last. The report comes just hours before the Trump administration is set to unveil its ‘Liberation Day’ tariffs, which are expected to see the US impose sweeping tariffs on trade partners including China. (Bloomberg)(Capital Brief)
