White House aide Peter Navarro said reciprocal tariffs to be announced tomorrow will generate US$6 trillion over the next decade, with another US$1 trillion from automotive levies.
Navarro, the Trump administration's senior counselor for trade and manufacturing, says the non-auto tariffs alone are set to bring in ~US$600 billion annually over the next decade, yet it is unclear how the money will actually be generated.
The world is waiting with bated breath for the release of Trump's reciprocal tariffs on April 2 - what he calls ‘Liberation Day’ - and the global animosity around the upcoming announcement has caused market volatility across a wide range of sectors.
Market bloodbath
A sea of red hit global markets on Monday, with the Nasdaq continuing a fall from its worst week in three years. The S&P 500 fell back into correction territory before bouncing off a 6-month low. Tokyo markets were the worst hit, falling 4%.
The volatility index, the VIX - a frequent indicator of the market's expectation of volatility - continued its impressive run with a rise of >30% over the last five trading days.
Find more: Decoding the 'fear gauge': Volatility and the VIX
Meanwhile, Goldman Sachs slashed its S&P 500 forecast for a second time this year from 6,200 to 5,700 points. It also downrated its global earnings per share (EPS) growth forecast from 7% to 3%.
“The message is that tariffs are tax cuts, tariffs are jobs, tariffs are national security,” Navarro told Fox News on Sunday.
“Tariffs are great for America. They will make America great again.”
