By coinnews 
At his “Liberation Day” spectacle at the White House Wednesday afternoon, Trump revealed a baseline tariff rate of 10% on countries that will go into effect on April 5.
Additional tariffs will be added for some countries that the administration considers to be the worst offenders.
Some of those alleged worst offenders are important sourcing and business regions for many large US companies such as Apple (AAPL), Nike (NKE), and Walmart (WMT). China, for example, will see an estimated reciprocal tariff of 34%. Vietnam at 32%. Japan is at 24%.
The news has hit stocks, with Dow Jones Industrial Average futures down about 1,200 points, or nearly 3% (YM=F). S&P 500 futures are down 3.5% (ES=F), and Nasdaq futures are off by 3.8% (NQ=F). Japan’s Nikkei (^N225) and Hong Kong’s Hang Seng Index (^HSI) have also registered significant losses.
Here’s the hot analysis investors need to know right now:
First, retail stocks are getting battered. Walmart, Nike, and Under Armour (UAA, UA) are getting slammed as steep tariffs on China could hammer profits. Nike, for example, relies on China and Vietnam for 55% of its sourcing. Stifel analyst Jim Duffy estimates Nike could see $1.69 a share in earnings wiped out this year because of tariffs.
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President Trump has liberated Mr. Market and the beast looks keen to now run through and over investors in a liberation day spectacle at the White House Wednesday afternoon. Trump uncorked a baseline tariff rate of 10% on countries that will go into effect on April 5th. Additional tariffs will be added for some countries that the administration considers to be the worst offenders. Some of those alleged worst offenders are important sourcing and business regions for many large US companies such as Apple, Nike, and Walmart. China, for example, will see an estimated reciprocal tariff of 34%. Vietnam clocks in at 32%. Japan is at 24%. Now the markets are getting pounded on news that pros tell me came as a negative shock. Right now, Dow Jones Industrial average futures are down about 1200 points or nearly 3%. S&P 500 futures are down 3 and a half% and Nasdaq futures are off by 3.8%. We’ve also seen big losses in Japan’s Nikkei and Hank and Hong Kong’s Hang Seng index. Now, here’s the hot analysis you need to know right now as all this stuff is happening. First, retail stocks are getting absolutely battered. Walmart, Nike, Under Armour getting slammed as steep tariffs on China could hammer profits. Take a look at Nike. The footwear giant relies on China and Vietnam for 55% of its sourcing. Stephen Anles, Jim Duffy estimates Nike could see $1.69 a share in earnings wiped out this year because of these tariffs. Next up, Tim Apple won’t have a good day. Apple CEO Tim Cook, of course, once called Tim Apple by President Trump in his first term, will have a tough day. Morgan Stanley estimates that tariffs on iPhones and other devices from China will increase Apple’s annual cost by a whopping $8.5 billion. That could hit Apple’s profits by 52 cents next year. Absolutely brutal. And lastly, the technical takedown. Market technicians are locked in on S&P 500’s March 13th closing low of 552750. At this moment, the S&P 500 is poised to test that low. Break through below the March lows intraday coupled with a new closing low could really damage sentiment further. Pros warm. RBC strategist Lori Calvasina says the S&P 500 has a clear shot to 4900 if that low is breached. Be sure to tune in to Yahoo Finance all day. We’ll have more coverage of the new tariffs and the market reactions.
Next up, Apple is going to have a rough day: Morgan Stanley estimates that the tariffs on iPhones and other devices from China will increase Apple’s annual costs by a whopping $8.5 billion. That could hit Apple’s profits by 52 cents next year. Brutal.
And lastly, the technical takedown: Market technicians are locked in on the S&P 500’s March 13 closing low of 5,527.50. At this moment, the S&P 500 (^GSPC) is poised to test that low. A break through below the March lows intraday coupled with a new closing low could really damage sentiment further pros warn. RBC strategist Lori Calvasina says the S&P 500 has a clear shot to 4,900 if that low is breached.
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