President Donald Trump plans to introduce reciprocal tariffs, termed ‘Liberation Day’ for American trade, on April 2. However, he indicated flexibility in his tariff strategy, suggesting he may offer tariff breaks to many countries. This has led to market optimism, with stocks surging nearly 2% on the belief that the tariffs may not be as severe as initially anticipated.
The S&P 500 reached its highest level since March 7, with companies like Tesla and Nvidia leading the rally. Despite this, concerns remain about the potential adverse effects of tariffs on U.S.-based multinational firms’ businesses abroad. Economists warn that tariffs could lead to inflation as importers pass on costs to consumers via higher prices. — news from Forbes