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Trump said he will set unilateral 'take it or leave it' tariffs on trading partners in the next 2 weeks

1. Trump plans to impose unilateral tariffs in two weeks. 2. Negotiations ongoing with 15 nations, tariffs will affect all others. 3. Tariffs could range from 10% to 46% for different regions. 4. Recent court ruling allows tariffs to stay in effect for two months. 5. Trade deals deemed unnecessary by Trump; letters will be sent soon.

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FAQ

Why Bearish?

Unilateral tariffs can disrupt trade and negatively impact S&P 500 companies reliant on global supply chains, reminiscent of the trade wars in 2018 where S&P 500 experienced volatility due to similar tariff announcements.

How important is it?

Trade policies directly affect S&P 500 earnings and sentiment, with a high likelihood of market volatility.

Why Short Term?

The immediate effects of tariff announcements are typically seen in the short-run, affecting stock prices quickly as investor sentiment reacts.

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