Core Viewpoint - The market has largely remained unfazed by President Trump's latest tariff increases, with investors questioning the long-term implications of these measures and viewing them as potential negotiating tactics rather than significant policy shifts [1][2][3]. Market Reaction - Asian stocks showed a positive trend, safe-haven assets remained stable, and the U.S. dollar index decreased by approximately 0.3% [2]. - The yields on the 10-year U.S. Treasury remained relatively unchanged, while gold prices increased by about 1% [2]. Tariff Details - The new tariffs have been raised to 15% from the previously announced 10%, following a Supreme Court ruling that invalidated earlier tariffs imposed under the International Emergency Economic Powers Act [3][4]. - The new tariffs under Section 122 are seen as a temporary measure, replacing the invalidated tariffs while maintaining existing duties under Sections 301 and 232, which target steel, autos, and China [4]. Investor Sentiment - Analysts suggest that investors should adopt a patient approach, as no trade policy statement from Trump is considered durable [5][6]. - The market has learned to view Trump's tariff announcements as temporary and often subject to change, leading to a sentiment of "noise" rather than significant concern [6][7]. Economic Outlook - The tax legislation from the previous year is believed to have established a stimulative fiscal policy that could mitigate any negative impacts from the tariffs [9]. - With midterm elections approaching, there is speculation that trade issues may become less of a political focus, potentially leading to a reduction in tariff-related tensions [9]. Risk Management - Some analysts recommend reducing exposure to U.S. equities in favor of global companies that are less affected by U.S. trade fluctuations [10]. - Persistent uncertainty surrounding tariffs could hinder global trade and corporate planning, complicating the market outlook [11]. Cryptocurrency Impact - Bitcoin experienced a decline of over 5%, reflecting its volatility as a high-beta liquidity asset rather than a traditional safe haven [11]. - The cryptocurrency has been on a downward trend since October, with a 26% decrease in value this year and a 47% drop since its peak [12].