US President Donald Trump said global tariffs would rise to 15% from 10%, CNBC reported on Saturday. The comments came a day after the Supreme Court struck down a broad part of the president’s trade agenda.
In a Truth Social post, Trump said the new tariffs would be effective immediately. He also said further levies would be added.
Market Volatility Spikes
At the time of publication, the US Dollar Index (DXY) was down 0.08% on the day at 97.68.
The announcement of a sudden global tariff increase to 15% injects significant uncertainty into the markets. We are seeing an immediate reaction in volatility, with the VIX jumping over 40% to 21.5 in overnight trading. Traders should anticipate higher option premiums and consider strategies that profit from price swings, such as long straddles on major indices.
This policy directly threatens corporate earnings, particularly for multinational companies reliant on global supply chains. Looking back at the 2018-2019 trade disputes, we saw sectors like technology and industrials suffer disproportionately, and we anticipate a similar pattern now. Protective puts on the SPX and NDX are prudent, especially as S&P 500 companies generated an estimated 42% of their revenue overseas in 2025.
In currency markets, the initial dip in the US Dollar Index suggests traders are weighing the long-term damage to the US economy over its typical safe-haven status. We expect export-oriented currencies to weaken, especially the Chinese Yuan, given that bilateral trade topped $700 billion last year. Conversely, the Japanese Yen may strengthen as a preferred safe haven, making long JPY positions attractive against the dollar.
Commodities And Bonds React
The prospect of slowing global growth is a headwind for industrial commodities. Crude oil futures have already slipped below $75 a barrel on fears of reduced demand, and copper is testing new lows for the year. In this environment, capital is likely to flow into traditional safe havens, positioning gold to break through the $2,500 an ounce resistance level.
This flight to safety is also evident in the bond market, pushing investors into US Treasuries. The yield on the 10-year note has already fallen 15 basis points to 3.65%, and we expect it to drop further as uncertainty persists. Long positions in Treasury futures should perform well as yields continue to compress in the coming weeks.
