Trumps Reverses Part of Tariff Plan

This week, President Trump reversed course on much of his massive tariff plan after a week of chaos in global commodities, bond and equities markets. The planned tariffs are still in play and could return July 9th.

Stock indices lost over 10% in the three trading days immediately after Trump's April 2 announcement, and yields in the bond market climbed in action described by analysts as a “vote of no confidence” in the Trump tariff plan.

While the tariffs on individual countries were mostly lifted, tariffs on goods imported from China into the United States were pushed up to 125%. Friday China matched its tariffs on imported goods from the United States at 125%.

A 10% tariff on many U.S. trading partners remains in place.  

In a hearing with the Senate Finance Committee, Trade Representative Jamieson Greer reiterated the Administration’s goal of gaining more access to the Chinese market.

Sen. Steve Daines, MT, R: “What can we do to hold China’s commitment to U.S. beef, and other ag imports, which are so critical right now for U.S. producers?”

Jamieson Greer, U.S. Trade Representative: “China, of course, needs to take down their barriers. It’s been a persistent challenge with them, and they like to use economic coercion, and they have their own method of doing things. My hope would be that they turn back on this course of action. And I think a lot of this will be up to the Chinese on how forward leaning they want to be on having fair trade with us.”

China purchased 2.4 million metric tons of soybeans from Brazil this week, a move that a purchasing analyst described as “surprisingly rapid.”

For Market to Market, I’m Peter Tubbs.