Trump renewed his threat to hit major trading partners, sending stock markets tumbling. But some investors have a glimmer of hope.
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In today’s big story, stocks tumbled following Trump’s latest tariff announcement. Some investors have a reason to remain calm.
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What’s on deck
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But first, investors are hungry for one thing: the TACO trade.TACO Tuesday
It was another turn of the screw for US stocks.
On Monday, US President Donald Trump renewed his threat to hit major trading partners with steep « reciprocal » tariffs unless they can broker a deal before August. Stocks tumbled in response, with the S&P 500 dropping almost 1%.
The latest round of tariffs traces back to Trump’s original package unveiled in April, which he delayed for 90 days to make room for negotiations. He extended that grace period, initially set to expire this week, until August 1.
How strict is that new timeline? Trump: « I would say firm, but not 100% firm. If they call up and they say we’d like to do something a different way, we’re going to be open to that. »
So, what’s changed?
On Monday, Trump posted letters on social media to Japan, South Korea, and 12 other nations informing them that they will face tariffs of at least 25% starting in August. More countries are expected to receive letters of their own in the coming days.
The rates they are facing are largely in line with what was initially announced, making the latest move look like a play for time to secure more favorable trade deals. As BI’s Brent Griffiths writes, Trump was nowhere near the pace of the 90 deals in 90 days goal, so he added more time to the clock.
