Understanding the Impact of US Tariff Policies on Global Liquidity in One Picture/In Depth Interpretation The implementation of the Emperor's tariff policy, ten thousand taxes, ten thousand taxes, ten thousand taxes 1. Universal tariff of 10% Trump announced that the United States will set a 10% "minimum benchmark tariff" for its trading partners, And impose higher tariffs on certain trading partners The benchmark tariff will take effect from April 5th When this news was first announced The market feels that it is lower than previous expectations, Optimistic performance, the three major US stock indices and BTC all closed higher. But when Trump pulled out a picture of equivalent tariffs, When it comes to facial recognition, the market crashes. Nasdaq futures fell more than 4% directly. And Bitcoin fell from 88500 to 82200. 2. Announcement of equivalent tariffs, with a maximum of 49% When Trump pulled out this equivalent tariff table, the market collapsed directly, much more than everyone had expected. Simply put, the United States calculates the non-tariff barriers (including value-added tax, etc.) of various countries, calculates the actual tariff level of each country on US imports (different from the average most favored nation tax rate), and uses half of it as the additional tariff level (based on 10% for those below 10%). The equivalent tariffs will take effect from April 9th. According to this calculation, equivalent tariffs will be imposed on approximately 185 countries, accounting for over 70% of the total imports of the United States. Exceeding the previously expected 15 countries. The additional tariffs imposed by major countries in the United States, such as (see reference for details), are essential for countries with significant trade deficits in the United States. Basically, the larger the trade deficit, the higher the tariffs imposed. After this new round of tariff increases, Dongda may have taken on too much responsibility. The total tariff on China: around 11%+additional 10%+additional 10%+additional 34%=around 64% (currently an additional 54% tariff has been imposed, close to the 60% advertised by Trump before he took office). This is simply a heavy blow. Previously, the market was overly optimistic and held onto the beautiful hope of Sino US peace talks, but now it is a pile of scattered sand and ashes. The tariff on Vietnam: an additional 46%, which is also very unexpected. Note: Vietnam and Mexico have been important links in Sino US trade in recent years. Tariffs on the EU: an additional 20%, better than the previously expected 25%; Tariffs on Canada and Mexico: Temporarily exempt 10% of the benchmark tariff and additional equivalent tariffs, better than previously expected. In addition, Russia is not included in this round of equivalent tariffs. 3. Tariffs on key commodities Automobile: An additional 25% levy will take effect on April 3rd. It will expand to nearly $600 billion worth of automotive components, covering cars, light trucks, engines, transmissions, lithium-ion batteries, as well as secondary components such as tires, shock absorbers, and spark plug wires. The automobile tariffs will cover all computer imports, including laptops and desktop computers, with a total import value of $138.5 billion in 2024. (Not overlapping with equivalent tariffs) Starting from April 3rd, taxes will be imposed on all foreign manufactured cars (including parts), but cars from Canada and Mexico that comply with the rules of origin of the USMCA are exempt. (Otherwise, after the new policy, the tax rate will be as high as 50%) Steel, Aluminum, and Energy: An additional 25% tariff will be imposed on Canadian steel and aluminum, while a 10% tariff will be imposed on Canadian energy products (oil and gas). Effective from March 12th. The "second level tariff" mechanism: Any country that purchases oil or natural gas from Venezuela will be subject to a 25% tariff on its exports to the United States (effective April 2). Italian Eni Group, Spanish Repsol and other companies have suspended the import of Venezuelan oil. In addition, we have not disclosed information on drugs, wood, semiconductor chips, and other related topics. Trump finally issued a warning: 1) If you want to retaliate against me, I will continue to modify the equivalent tariff policy, which can be higher. You can take care of it; 2) If you are cowardly and listen to me to make changes, then I can also modify the equivalent tariff policy and reduce the imposition of tariffs. Brothers, the implementation of tariffs does not mean that the bearish trend has bottomed out. The tug of war may have just begun. Conclusion: Negative for risk assets (cryptocurrency/US stocks), positive for safe haven assets such as gold and US bonds.