The new tariff will be collected beginning tomorrow, April 9th. Markets were predictably displeased.

We ran out of chart pic.twitter.com/3uuXcoNxXy

— zerohedge (@zerohedge) April 7, 2025

Clearly only another Ackman meltdown or Walter Bloomberg tweet can save us now.

Update (1100ET): US equity market are fading rapidly from a huge start this morning...

...the top seemed to coincide with a renewed surge lower in China's offshore yuan...

...to a new record low against the dollar...

...further raising the specter of China trade war escalation with the possibility of a devaluation looming (as we detailed overnight).

The spread between Onshore Yuan (fixing) and offshore yuan is at its limit - something has to give.

Remember, China has three options:

China has three options:

1. Concede defeat to whatever terms Trump demands
2. Devalue the yuan by 20-40%
3. Unleash biggest fiscal stimulus in its history (talking $2-3 trillion) which will push its debt off the chart

— zerohedge (@zerohedge) April 4, 2025

Did that just decide to go with Option 2?

Notably the initial exuberant short-squeeze was unsustainable and has been hinting at the rally's fragility all morning...

Finally, bear in mind that, as Goldman noted, those paying attention during the first trade war in 2018 would remember similar wording from the MOFCOM in Apr 2018 when the spokesperson also said Beijing will "fight to the end" yet the two sides entered into talks just the month after.