President Donald Trump’s highly anticipated reciprocal tariffs are just nine days away, with April 2nd officially dubbed “Liberation Day” by the president. As Wall Street tries to decipher what’s coming, uncertainty reigns over the scope and scale of Trump’s boldest trade move yet.

Key Facts

  • Trump has described the tariffs as “the BIG ONE”, promising to match tariffs on U.S. goods with equivalent duties on imports from foreign countries.
  • Originally slated for April 1, Trump delayed the rollout by a day to avoid “April Fool’s Day” confusion: “I didn’t want it to be April Fool’s Day because then nobody would believe what I said,” Trump told reporters Friday.
  • Trump also signaled “flexibility” on the tariffs, raising questions about which countries and goods will be targeted.
  • Reports suggest the White House will avoid immediate actions on sensitive sectors like semiconductor chips and automobiles, focusing instead on sending a tariff data report to trade partners on April 2.

Market Reactions

Despite the rhetoric, Wall Street appears to believe the impact may be less severe than feared:

  • The S&P 500 surged nearly 2% on Monday, its biggest gain since early March.
  • Leading the rally were stocks most at risk from tariffs, including Tesla and Nvidia, on hopes that Trump’s actions will be limited.

What’s At Stake?

According to UBS, executing a full reciprocal tariff plan could involve as many as 2.5 million individual tariff rates, making an immediate rollout unlikely.

“Presumably something is going to happen,” UBS economists wrote. “But the hard part is trying to figure out what precisely that might be.”

Big Picture

Trump’s trade policy shake-up comes after years of rising tariffs, including:

  • 25% tariffs on steel and aluminum
  • 20% duties on Chinese goods
    And exemptions on Canada and Mexico’s goods are set to expire on April 2, adding further tension with America’s top trade partners.

Economists warn the tariffs could drive up inflation, with importers likely to pass higher costs onto consumers. Despite Monday’s rally, the S&P 500 remains 6% below its February peak as markets weigh the potential fallout of Trump’s “Liberation Day”.

Stay tuned as April 2 approaches, and the world watches how Trump’s reciprocal tariffs reshape global trade.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.

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