The Market Is Back Up in Response
Trump’s latest tariffs took effect last Wednesday. At the time, they represented the highest effective tariff rate in the US in more than a century. With the new 125% tariff reveal, they’re up even further: Before the new announcement today, the China tariff was at 104%.
But the just-revealed pause on many tariffs has boosted the market, which has always had a pretty short memory.
At the time of writing, the Dow has surged 2,700 points, marking its biggest rally in five years. It needs it, given the days of declines that it has seen across the past week while the reality of the new tariffs sank in. However, plenty of negative market signals remain, and the market still remains in danger of continuing its decline.
Not Paused: De Minimis Removal, Other Tariffs
Not mentioned in Trump’s latest message? The de minimis exemptions, a key trade loophole that allowed small business owners like dropshippers or ecommerce brands like Temu to import products worth under $800 without additional duties. Trump officially revoked it last week, with the change going into effect in early May. Since he hasn’t yet issued on pause on this change, it’s still set to go through.
The same is true for previous tariffs, including a big 25% tariff on auto, steel, and aluminum imports. The baseline 10% tariff hike alone will represent a challenge for many businesses with thin margins, and a supply chain disruption could have wide ripples throughout the logistics industry.
