Trump's Tariff Reversal Triggers Surge in Safe-Haven Demand

Market Overview

Last Friday, investor sentiment was rattled as the Trump administration reversed course once again on its import tariff policy. A steep tariff hike has been postponed for 90 days, during which a reduced 10% reciprocal tariff will be enforced. However, tariffs on Chinese imports were immediately raised to 145%. The sudden policy shift undermined confidence in the U.S. dollar as a safe-haven asset. In response, spot gold soared to a new record high of $3,245 per ounce before settling 1.95% higher at $3,237.83. Spot silver also posted significant gains, climbing 3.42% to close at $32.26 per ounce.

Key Themes to Watch

● Electronics Exemptions May Be Reversed

U.S. Commerce Secretary Lutnick stated that previously exempted products such as smartphones, laptops, and wireless earbuds are now under review. These items may soon be included in a new round of semiconductor-related tariffs, potentially to be implemented within the next one to two months. Pharmaceutical tariffs are also expected to follow in the near term.

● Trump to Announce More Details on Semiconductor Tariffs Monday

According to Trump, no product categories have been exempted as of Friday; theyve merely been reassigned to different tariff classifications. He emphasized ongoing attention to the semiconductor sector and broader electronics supply chain. While some attribute the tariff pause to bond market signals, Trump clarified that this was not the case. He also downplayed recent U.S. dollar weakness, stating the greenback will rebound and become even stronger.

Key Economic Data (GMT+8)

• 20:30 – Canada February Wholesale Sales (MoM)

• 20:30 – Canada February Wholesale Inventories (YoY)

• 23:00 – U.S. NY Fed March 1-Year Inflation Expectations