Citigroup report predicts three main scenarios and market impacts of US tariff policy day on April 2
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Planet Daily News: Citibank predicted three main scenarios for the U.S. tariff policy day on April 2nd in its latest report, and analyzed the corresponding market impacts: Only announcing reciprocal tariffs: In this scenario, market reaction would be relatively limited. Reciprocal tariffs plus VAT: The U.S. dollar index might immediately rise 50-100 basis points, and global stock markets might decline. Including industry-specific tariffs in addition to reciprocal tariffs and VAT: Market reaction in this scenario might be more intense. The report noted that after the worst quarter since 2020 for the S&P 500, analysts have been warning that the potential downside risk is greater than the upside. Analysis suggests that future tariffs and retaliatory actions will be key, and the market reaction on April 2nd will depend on the timing of tariffs, especially industry tariffs and the speed of other countries' responses to reciprocal tariffs.
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