Core Insights - Trump's tariff threats have triggered panic in global markets, leading to a significant drop in U.S. stocks and a surge in gold prices to a historical high of $4060, indicating a shift towards risk aversion in the global economy [1] Market Reactions - U.S. stock indices experienced their largest weekly declines in months, with technology stocks being particularly hard hit; the Philadelphia Semiconductor Index fell by 6.3% [1] - Investors are rapidly selling off risk assets and turning to gold as a safe haven, with gold prices increasing over 50% this year and silver rising by 73% [1] Economic Impact - A study from Yale University suggests that reciprocal tariffs could lead to a 1.3% increase in U.S. prices and a 0.5% decrease in economic growth [1] - Allies have retaliated against U.S. tariffs, with Canada imposing a 25% tax on U.S. automobiles and the EU targeting $26 billion worth of U.S. goods, illustrating the self-damaging nature of the tariff strategy [1] Global Trade Dynamics - The EU is advancing free trade agreements with Southern markets, and negotiations are accelerating between China, Japan, and South Korea, indicating a trend of "de-Americanization" in global supply chains [1] - As the U.S. focuses on tariff leverage, the rest of the world is moving to rebuild trade order, raising concerns about the credibility of the U.S. dollar amid rising national debt exceeding $37 trillion [1]