President Donald Trump hinted on Monday that his upcoming tariff announcement, dubbed “Liberation Day,” may be less impactful than initially suggested. Trump stated there would be “flexibility” in his tariffs and that he “may give a lot of countries breaks.”
The announcement, originally set for April 1, was moved to April 2 to avoid being perceived as an April Fool’s Day joke. Despite Trump’s declaration to overhaul the global trade status quo, Treasury Secretary Scott Bessent suggested the most significant development on April 2 would be the White House sending a tariff equivalence assessment to trade partners.
Economists from UBS have expressed skepticism about the feasibility of implementing a comprehensive reciprocal tariff plan by next week. They estimate that such a policy would require defining 2.5 million individual tariff rates.
Trump signals tariff announcement flexibility
Stocks surged on Monday amid optimism that the April 2 tariffs will be less severe than anticipated. The S&P 500 rose nearly 2% to its highest level since March 7, with shares of companies potentially most impacted by a stringent tariff scenario, including Tesla and Nvidia, leading the rally. Major U.S.-based multinational firms have cautioned the Trump administration about the adverse effects of new tariffs on American businesses abroad.
Even after Monday’s market rebound, stocks remain 6% below their February 19 record. Although reciprocal tariffs could be the most impactful yet, Trump has already implemented several tariffs, including levies on steel, aluminum, and Chinese goods. Importers largely agree that these tariffs will be passed on to consumers through higher prices, at least in the short term.
