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Investing.com — U.S. President Donald Trump did not unleash tariffs on ‘day one’ as many had feared, however Barclays (LON:BARC) warns that markets should not get complacent for too lengthy, and singles out Apr. 1 as a key date to look at for adjustments to tariff coverage, citing clues from the ‘America First Commerce Coverage’ presidential memorandum.
“President Trump didn’t impose tariffs on day one. As an alternative, he issued a presidential memorandum entitled ‘America First Commerce Coverage,'” Barclays mentioned in a observe. “Traders ought to learn the memorandum as a blueprint for what to anticipate subsequent on tariffs.”
The memorandum directs sure departments and businesses to overview and challenge reviews by April 1, 2025. These reviews, the analysts imagine, are prone to serve because the catalysts for brand new tariff proposals or changes to present tariffs.
In additional help of the Apr. 1 as key date to look at, the analysts imagine the timeline additionally offers ample time for the Senate to substantiate key positions, together with Howard Lutnick as Commerce Secretary and Jamieson Greer as US Commerce Consultant. These two roles want to be crammed earlier than the Trump administration begins to change tariff coverage, the analysts added.
Following the reviews due on Apr. 1, adjustments to tariff coverage might be introduced, probably taking impact 30-to 60-days later, Barclays mentioned.
The presidential memo means that varied tariffs might be on the desk together with a common tariff and tariffs focusing on China, Mexico, and Canada.
Trump has, nonetheless, already threatened to impose 25% tariffs on Mexico and Canada beginning Feb 1, and as much as 100% tariffs on China over TikTok, however Barclays believes the timeline proposed in the memorandum carries extra weight reasonably than these “off-the-cuff remarks.”
The memorandum additionally requires investigations into the causes of the U.S.’s annual commerce deficits in items and proposals for cures, which may embrace “a world supplemental tariff or different insurance policies.”
This implies that “nations and sectors most susceptible to focused tariffs might be these with the biggest commerce deficits in items with the US,” Barclays mentioned.
