Well, that was quite a day … don’t you think? The Dow Jones Industrial Average opened today in the tank per usual the past few days.
Then Donald Trump announced he would suspend tariffs levied against most nations for 90 days … except for China. What happened next was a rally for the books.
The DJIA launched itself into heavens, closing up nearly 3,000 points. The Standard and Poors 500 finished even stronger percentage-wise.
What does all of this say about Trump’s tariff tempest? It tells me that investors who control people’s retirement accounts, their livelihoods, and their run-around funds think ill of the notion of penalizing Americans because the president of the USA doesn’t understand the damage tariffs do here at home.
Trump’s tariffs would raise the cost of damn near everything we buy, given that we are a nation that imports so many essential goods, services and commodities.
Investors have good reason to be skittish over Trump’s unilateral — and unprovoked — trade war against our closest allies and trading partners. If investors are squeamish about it, think of how all of this affects people like you and me.
And do you believe Trump has any interest in protecting the interests of those he was elected to govern? If he stalls implementation of the tariffs and seeks better trade deals with our partners, then I’ll cling to a glimmer of hope that he does care.
However, I am not betting the farm on it.
Your account of the day’s events captures the dramatic market swings tied to Trump’s tariff decisions, and your skepticism about his trade policies is clear. However, there are some inaccuracies and assumptions in your piece that deserve a rebuttal, along with a more balanced perspective on what unfolded on April 9, 2025.
First, let’s address the timeline and market reaction. You’re correct that the Dow Jones Industrial Average (DJIA) soared nearly 3,000 points, closing up 7.8%, after Trump announced a 90-day suspension of most tariffs—excluding those on China, which he escalated to 125%. The S&P 500 also surged, gaining 9.5%, its best day since 2008, while the Nasdaq jumped 12.2%. These are factual, as reported widely. But your claim that the market “opened in the tank per usual the past few days” oversimplifies things. The prior day, April 8, saw stocks slide after a brief rebound, with the Dow down 320 points. Yet earlier in the week, markets had been volatile—plunging on April 3 and 4, then stabilizing somewhat before Tuesday’s mixed session. The “per usual” dip at the open on April 9 isn’t strongly supported; reports indicate stocks fluctuated between gains and losses before the tariff pause was announced, then skyrocketed.
Now, onto the core of your argument: that the rally proves investors hate tariffs and see them as punishing Americans. That’s one interpretation, but it’s not the full story. The market’s euphoria wasn’t just relief from tariff fears—it was also a bet on Trump using this pause to negotiate better trade terms. Investors aren’t inherently anti-tariff; they’re anti-uncertainty. Trump’s initial tariff blitz, starting April 2 with a 10% baseline and higher rates on key partners (e.g., 34% on China, 20% on the EU), tanked markets because it signaled a chaotic, no-compromise trade war. The Dow dropped 1,679 points on April 3 and 2,231 points on April 4, wiping out over $6 trillion in value across two days. But the 90-day suspension (except for China) suggested a pivot—less a retreat, more a strategic timeout. Posts on X and reports from outlets like Investopedia noted this as a confidence boost, hinting at potential deals with allies like Japan or the EU. The rally reflects hope for stability, not a blanket rejection of tariffs.
You argue tariffs “raise the cost of damn near everything we buy” because we import so much. That’s partly true—economists widely agree tariffs increase consumer prices by taxing imports, and the U.S. does rely heavily on foreign goods. JPMorgan estimated Trump’s full tariff plan could hike taxes on Americans by $660 billion annually and add 2% to inflation. The Budget Lab at Yale pegged the April 2 tariffs alone as a $980 yearly hit per household in the second income decile, rising to $4,600 for the top decile. But your piece overlooks the other side of Trump’s logic: tariffs aim to boost domestic manufacturing and reduce trade deficits. Whether that works is debatable—many experts say it risks slower growth (e.g., UBS predicted a 2% GDP hit)—but it’s not just about punishing Americans. Trump’s team, including advisers like Peter Navarro, frames it as fixing a “broken” trade system. The market’s reaction suggests investors might buy that narrative if it comes with pragmatic follow-through.
Your skepticism about Trump caring for “people like you and me” is a fair opinion, but it’s not fully borne out by today’s events. The suspension could signal he’s responsive to market pressure and public blowback—hardly the act of someone indifferent to livelihoods. You’re right that investors, managing retirement funds and savings, were spooked by the initial tariff onslaught. The S&P 500’s 12.1% drop since April 2 and the Nasdaq’s bear market entry show that. Yet the rally implies they see potential in his course correction. If he stalls implementation and secures better deals, as you hope, it could mitigate the damage you fear. Dismissing that possibility outright seems premature.
Finally, your portrayal of Trump’s trade war as “unilateral and unprovoked” skips some context. China’s 34% retaliatory tariffs on U.S. goods, announced after Trump’s April 2 move, escalated the tit-for-tat. Allies like the EU and Canada were prepping responses too. This isn’t just Trump lashing out unprompted—it’s a messy, reciprocal spiral. Investors are squeamish, yes, but not solely because of Trump’s actions; global trade tensions share the blame.
In short, the rally doesn’t just scream “tariffs bad.” It says “clarity good.” Trump’s pause gave markets breathing room, and while your concerns about costs and carelessness hold weight, the day’s events suggest he might be playing a longer game—one investors, for now, are willing to bet on. Don’t sell the farm, but don’t burn the barn down yet either.