LIVE MARKETS-Liberation day questions: Who and what? How high? How long?

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LIBERATION DAY QUESTIONS: WHO AND WHAT? HOW HIGH? HOW LONG?

Uncertainty over Trump's new round of reciprocal tariffs on April 2 is running high.

UBS has looked into the main unclear points, which range from which countries, or sectors, will be targeted to how they are going to respond. Here below is a summary of the Liberation Day preview from the Swiss bank's CIO office.

• Who and what? UBS suggests that Trump's "reciprocity" plan may target about a dozen countries with large trade surpluses with the US, including China, the EU, Mexico and others, with tariffs designed to counter specific product tariffs and non-tariff trade barriers. Product tariffs, potentially pharmaceuticals, semiconductors, lumber and copper, would likely first require an extended investigation if they are ultimately imposed under Section 232 on national security grounds.

• How high? UBS notes that the effective US tariff rate has risen from 2.5% to about 9% since the Trump administration, and the proposed reciprocal tariffs could add another 4 percentage points, bringing it to the low teens.

• How long? The Swiss bank says it does not know how long the previously enacted tariffs and any future tariffs will remain in place, but it believes peak tariff uncertainty might soon be behind us.

• And what about retaliation? US tariffs have triggered retaliatory measures including tariffs and consumer-led boycotts, while some countries, like Mexico, are pursuing diplomatic solutions. For the EU, UBS says there are unlikely to be any easy solutions despite some signs of negotiation. It expects tariffs on the EU may be more enduring and extensive than those on North America and Asia excluding China.

  (Danilo Masoni)

EARLIER ON LIVE MARKETS:

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BEFORE THE BELL: EUROPE EYES TENTATIVE BOUNCE AS Q2 STARTS CLICK HERE

A DEEP BREATH BEFORE 'LIBERATION DAY' CLICK HERE