The Tariff Details: Broader and Harsher
"Liberation Day" wasn't one executive order — it was a barrage. China bore the brunt: immediate escalation to 34% across consumer electronics, apparel, toys, and components.
Canada and Mexico lost most exemptions, hitting autos, agriculture, and manufacturing. Europe got slammed on luxury vehicles and industrial goods.
Corporate America's response was swift: warnings of price hikes, supply-chain scrambling, and delayed capex. Autos announced potential price increases of $2,000–$10,000 per vehicle.
Winners: Domestic Purity
- Pure-play domestic: Small/mid-cap industrials, materials, defense hit ATHs
- Energy & commodities: Oil popped on supply concerns
- Financials: Banks ripped on higher yields
- Dollar: DXY cleared 110 — strongest since 2002
Losers: Global Complexity
- Apple, Tesla, Nike, GM, Ford: Down 8–15% in days
- Consumer discretionary: Margin compression fears
- Tech hardware & semis: Tariff exposure on components
- Emerging markets: EM equities and currencies in freefall
Mega-cap AI pure plays (software, cloud, NVIDIA) held up best — secular demand overriding near-term noise.
Bottom Line
Liberation Day wasn't a bluff — it was a full-scale trade reset injecting serious volatility. The rotation toward domestic winners is accelerating.
The structural bull case hasn't vanished, but tariff friction is now the dominant overlay. We're staying disciplined: heavily overweight AI leaders with minimal direct exposure.