According to SPDB International's report, US President Donald Trump has announced the details of the "reciprocal tariff" policy, which includes a 10% "minimum baseline tariff" for all countries to be effective at 12:01 am Eastern Time on April 5 and personalized higher "reciprocal tariffs" for countries with the largest US trade deficits to be effective at 12:01 am Eastern Time on April 9.

Trump's tariff policy will raise tariffs on imports from China by another 34% to 67%. Traditional US trade partners Japan and the EU will also face tariff hikes of 24% and 20% to 46% and 39%, respectively.

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In SPDB International's opinion, the details of the US "reciprocal tariff" policy far exceed market expectations. Although the market was relatively optimistic about Trump's tariff policy in the early days of his presidency, the broker has always believed that his intention to use tariffs and other means to reverse the US trade deficit and increase fiscal revenue from tariffs (to create policy space for his comprehensive tax reduction plan) should not be underestimated.

Considering the damage high tariffs could inflict on the US economy itself, SPDB International estimated that Trump might temporarily suspend or reduce the "reciprocal tariffs" for certain countries, especially the personalized higher "reciprocal tariffs", after bilateral consultations with important trade partners. However, the 10% "minimum baseline tariff" is likely to be retained for most countries.