In what may well be his first act as president, Trump announced the imposition of new tariffs on Canada, Mexico and China as soon as he comes into office. While the initial market reaction has been contained for reasons discuss below, the overall read is that tariffs are clearly at the top of the Trump agenda.

As we discussed yesterday, and as Deutsche Bank's chief FX strategist, George Saravelos, writes, the announcement is an implicit signal that tariffs are likely to be used as a broad-based economic and geopolitical tool in this Administration. What's more, uncertainty is the key transmission channel via which the economic impact of a trade war transmits to the world and the announcements overnight achieve just that: high uncertainty. Indeed, as Saravelos we wrote last week, the Trump policy mix remains significantly underpriced.

Here are ten conclusions we draw from the overnight announcement: