Investors are recalibrating their approach to U.S. President Donald Trump’s fluctuating policy changes, questioning whether a so-called “Trump put” supporting stock market prices is fading. Since returning to the White House, Trump’s rapid-fire tariff policies have unsettled risk markets, hurt consumer and business confidence, and raised fears that his second term may not be as market-friendly as expected. Treasury Secretary Scott Bessent has pledged to lower the U.S. Treasury 10-year yield, influencing borrowing costs for both the government and consumers. The administration’s focus on tariffs and spending cuts suggests awareness of risks posed by mounting government debt. On Tuesday, stocks dropped after Trump imposed new tariffs on imports from Mexico, Canada, and China, but pared losses on Wednesday as trade tensions eased. Investors worry that weakening consumer confidence could strain the economy. White House Press Secretary Karoline Leavitt stated that Trump supports tariffs to raise revenue, reduce debt, and spur domestic job growth. Despite sharp declines, U.S. stocks remain around the levels seen at Trump’s November election victory. While tariffs have sparked fears of prolonged trade wars, many see them as a bargaining tool for better trade terms. — news from Reuters
