The USD is sharply lower vs the EURUSD, USDJPY and GBPUSD after the "Liberation Day" tariffs. As a review, below are the current new tariff view for the EU, JPY and GBP

European Union (EU):

  • Baseline Tariff: A 10% tariff was imposed on all foreign imports

  • Reciprocal Tariff:An additional 20% tariff was applied specifically to EU imports, bringing the total to 30%.

  • Steel and Aluminum: A 25% tariff on steel and aluminum imports from the EU took effect on March 12, 2025. ​

Tariffs on Japanese Imports:

  • Baseline Tariff: A universal 10% tariff on all imports was introduced, effective April 5, 2025.

  • Reciprocal Tariff: An additional 24% tariff was imposed specifically on Japanese imports, bringing the total to 34%. This higher rate was scheduled to take effect on April 9, 2025.

  • Automobile Imports:Separately, a 25% tariff on all automobile imports, including those from Japan, took effect on April 3, 2025.

United Kingdom (UK):

  • Baseline Tariff: The UK faced the general 10% tariff on all imports.​

  • Reciprocal Tariff:Unlike the EU, the UK was spared additional reciprocal tariffs due to strategic negotiations post-Brexit.

  • Steel and Aluminum: Despite previous exemptions, a 25% tariff on UK steel and aluminum imports was imposed, effective March 12, 2025.

FYI, the top 10 trading partners with the US:

  • Mexico: 14.5%​

  • Canada: 13.5%​

  • China: 10.7%​

  • Switzerland: 5.3%​

  • Germany: 4.1%​

  • Japan: 3.9%​

  • South Korea: 3.3%​

  • Ireland: 3.1%​

  • Taiwan: 3.0%​

  • Vietnam: 2.9%

The market has reacted with a sharp fall in US stocks, lower yield and the lower dollar (which makes US exports cheaper abroad).

In the video above, I outline the technicals that will now drive the major currencies given the sharp moves.

Source: Forex Live