US Liberation:Global Deliberation Worry

In the next forty-eight hours, President Trump will announce the most awaited tariff changes, marking it as Liberation Day. Will the announcement lead to the biggest reset in Global Trade in recent times, or will it be less painful than all estimates? 

Since the campaign days, many proposals have come up for the plan to be executed, but the right one will be picked by the President himself. Even though countries are facing a hurdle to knowing what it will be and how to respond to it, the problem is that it will only be known on the day and time itself. 

Choices in focus range from putting countries into tiers or putting the heaviest tariff on the top 15 with the highest deficits. Another way in discussion is to put a universal tariff that rises monthly till a certain level is achieved. 

Whether the financial markets or central banks are able to assess the decisions and their impact rightly is anyone's guess. The combination of so many unknowns has already created unfamiliar friendly relations such as South Korea, Japan and China coming together to respond to such tariffs. 

The main concern would be if post announcement the uncertainty over tariffs, prices, profits and economic data continues or goes higher. This would mean that peak uncertainty is still away and volatility will continue to drive asset prices.