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 major part of the president’s trade agenda.
In a Truth Social post, Trump said the new tariffs would take effect immediately. He also said more levies would follow.
Market Volatility Spikes
At the time of publication, the US Dollar Index (DXY) was down 0.08% on the day at 97.68.
A sudden jump in global tariffs to 15% adds major uncertainty to the markets. Volatility reacted right away, with the VIX up more than 40% to 21.5 in overnight trading. Traders should expect higher option premiums and may consider strategies that benefit from bigger moves, such as long straddles on major indices.
This policy could hurt corporate earnings, especially for multinationals that depend on global supply chains. During the 2018–2019 trade disputes, sectors like technology and industrials were hit harder than others, and we expect a similar pattern now. Protective puts on the SPX and NDX may help manage downside risk, particularly because S&P 500 companies generated an estimated 42% of their revenue overseas in 2025.
In currency markets, the early dip in the US Dollar Index suggests traders may be focusing on the longer-term impact on the US economy, rather than the dollar’s usual safe-haven role. We expect export-focused currencies to weaken, especially the Chinese Yuan, since US-China trade topped $700 billion last year. By contrast, the Japanese Yen may strengthen as a preferred safe haven, which could make long JPY positions appealing versus the dollar.
Commodities And Bonds React
The risk of slower global growth is a negative for industrial commodities. Crude oil futures have already fallen below $75 a barrel on fears of weaker demand, and copper is testing new lows for the year. In this setting, money often moves into traditional safe havens, which could help gold break above the $2,500-an-ounce resistance level.
This move toward safety is also showing up in bonds, with investors buying US Treasuries. The 10-year yield has already dropped 15 basis points to 3.65%, and we expect it to fall further if uncertainty continues. Long positions in Treasury futures may benefit if yields keep moving lower in the coming weeks.
Create your live VT Markets account and start trading now.
here to set up a live account on VT Markets now
