✔️ Market reaction
Dollar Index: Temporarily decreased by 1% after the WP report, narrowing the decline following remarks by Mr. Trump.
Yen: Falls again against the dollar.
Euro: Narrowing gains against the dollar.
✔️ Impact on financial policies
If the range of tariffs narrows, the inflationary pressure weakens, making it easier for the US monetary authorities to pursue rate cuts.
✔️Focus on tariff targets.
Iron & Steel, Aluminum, Defense Industry, Essential Medical Supplies, Battery, Rare Earth, Solar Panels.
✔️Points to watch in the future.
Announcement of actual tariff targets and scope.
Trends in US monetary policy (speculation of interest rate cuts).
Impact on the foreign exchange market and commodity market.
【Educational Perspective】
While President Trump's tariff policy maintains a protectionist stance based on election promises, the impact of the Washington Post's "Limited Proposal for Important Imports" cannot be ignored. In particular, if Iron & Steel and Energy sectors are targeted, concerns arise regarding price increases in these areas and impacts on the supply chain.
On the other hand, looking at the market's reaction, if the range of tariffs is reduced, inflationary pressures will ease, and there is a growing expectation that the financial authorities will find it easier to cut interest rates.
However, based on the sense of security that Mr. Trump's remarks have brought to the market, depending on the actual policy implementation, there is a possibility that the volatility of the dollar and the foreign exchange market may increase again.
In the long term, it is anticipated that tariffs will be selectively implemented under the guise of economic security, leading to import restrictions in specific areas which may promote the return of manufacturing in the USA.