Markets rallied Monday afternoon on reports that President Donald Trump’s wave of April 2 tariffs may be more targeted than initially anticipated.
Trump’s so-called “Liberation Day” announcement will unveil sweeping reciprocal tariffs on other nations, including longtime allies, that currently tax US imports.
But the April 2 block of tariffs may not include the industry-specific levies previously floated by Trump, and likely won’t be as wide-ranging as originally reported, according to Bloomberg and The Wall Street Journal.
It was welcome news for Wall Street as the S&P 500 rose 1.7%, the Dow jumped 1.4% and the Nasdaq 100 rose 2%. The markets earlier this year tanked on news of the tariffs, which economists have warned could reheat inflation.
“We may have sectoral tariffs on April 2 and we may not,” a White House official told The Post in a statement. “No final decisions have been made yet on sectoral tariffs being tacked onto reciprocal for April 2 timeline.”
The administration is instead focused on applying reciprocal tariffs to the “dirty 15” – about 15% of nations designated as particular trade abusers, according to Treasury Secretary Scott Bessent.
The exact countries included in that list are unclear, though it will likely include nations like Australia, Brazil, Canada, China, the European Union, India, Japan, South Korea, Mexico, Russia, Vietnam and more, a source familiar with the plans told the Journal.
In the Oval Office on Friday, Trump boasted that his planned tariffs will bring in “tens of billions” of dollars.
“April 2nd is going to be liberation day for America,” he said. “We’ve been ripped off by every country in the world, friend and foe.”
The president has argued the taxes will help bring manufacturing back to the US, and pressure neighboring countries Canada and Mexico to tamp down on illegal border crossings and fentanyl trafficking.
His initial proposal – stiff 25% tariffs on Canada and Mexico – was halted for a month, and put on a second 30-day pause to be lifted on April 2 as countries rushed to the negotiation table to avoid the taxes.
The across-the-board tariffs spooked investors and sent markets on a wild ride, erasing post-election gains and sending the “Magnificent 7” tech stocks on a downward slide.
But investors rallied on Monday on reports that the president’s sectoral tariffs on semiconductor chips, pharmaceutical drugs, lumber and the automotive industry may not take effect on April 2.
And the 25% tariffs on steel and aluminum imports imposed last month may not add on to the country-by-country reciprocal rates, according to Treasury Secretary Scott Bessent.
“I will have a better sense as we get closer to April 2nd. So, they could be stacked,” he told Fox Business last week.
Also on Monday, however, Trump said he would announce in the very near future tariffs on automobiles, aluminum and pharmaceuticals.
Speaking to reporters at the White House, he said those products are crucial if there are problems including war.
