As I watched the stock markets soar, I wondered if the media would admit that President Donald Trump may have been right about tariffs after all.
Stock markets soared May 12 after President Donald Trump announced a temporary trade deal with China. The move eases concerns at least for now about the softening economy and fears of a fresh round of inflation.
It also raises important questions: Will Trump seal a permanent deal? If he does, will his critics recognize that his gamble on tariffs paid off?
News of the trade agreement sent stock markets soaring. The S&P 500 climbed more than 3%, the Dow Jones Industrial Average surged more than 1,100 points and the Nasdaq Composite rose more than 4.3%.
Stock analysts told USA TODAY that the trade deal means record highs for U.S. markets are once again possible after a rocky first few months of 2025.
I have mixed feelings about Trump’s use of tariffs as a negotiating tool. Tariffs are a tax on everything from groceries to clothes to automobiles.
I can understand why Trump made this gamble − American workers will be the winners if more goods are manufactured in the United States. Even so, the tariffs have slowed economic growth, unsettled investors and cost Trump political capital with Republicans in Congress (which he will need if his tax cut proposal is to become law).
