During our 4Q2024 commentary, we anticipated that 2025 would be a "choppy" year, and indeed, this has been validated by heightened volatility throughout 1Q2025, which was further exacerbated on April 2nd following the announcement of sweeping new tariffs, referred to as “Liberation Day”.

 

Throughout the first quarter of 2025, the U.S. imposed significant tariffs on steel and aluminum imports, increasing the rate to 25% for nearly all countries, aiming to protect domestic industries. However, the latest tariff developments expand these trade barriers even further, introducing a new 10% baseline tariff on imports from multiple trading partners, alongside additional tariffs ranging from 11% to 50% on key nations including Vietnam, and members of the European Union.  And, more recently, bilateral tariff rates with China now between 80% and 125%.