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 dayâs events captures the dramatic market swings tied to Trumpâs 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, letâs address the timeline and market reaction. Youâre 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 tariffsâexcluding 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 âopened in the tank per usual the past few daysâ 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 volatileâplunging on April 3 and 4, then stabilizing somewhat before Tuesdayâs mixed session. The âper usualâ dip at the open on April 9 isnât 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. Thatâs one interpretation, but itâs not the full story. The marketâs euphoria wasnât just relief from tariff fearsâit was also a bet on Trump using this pause to negotiate better trade terms. Investors arenât inherently anti-tariff; theyâre anti-uncertainty. Trumpâs 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 pivotâless 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 âraise the cost of damn near everything we buyâ because we import so much. Thatâs partly trueâeconomists widely agree tariffs increase consumer prices by taxing imports, and the U.S. does rely heavily on foreign goods. JPMorgan estimated Trumpâs 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 Trumpâs logic: tariffs aim to boost domestic manufacturing and reduce trade deficits. Whether that works is debatableâmany experts say it risks slower growth (e.g., UBS predicted a 2% GDP hit)âbut itâs not just about punishing Americans. Trumpâs team, including advisers like Peter Navarro, frames it as fixing a âbrokenâ trade system. The marketâs reaction suggests investors might buy that narrative if it comes with pragmatic follow-through.
Your skepticism about Trump caring for âpeople like you and meâ is a fair opinion, but itâs not fully borne out by todayâs events. The suspension could signal heâs responsive to market pressure and public blowbackâhardly the act of someone indifferent to livelihoods. Youâre right that investors, managing retirement funds and savings, were spooked by the initial tariff onslaught. The S&P 500âs 12.1% drop since April 2 and the Nasdaqâs 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 Trumpâs trade war as âunilateral and unprovokedâ skips some context. Chinaâs 34% retaliatory tariffs on U.S. goods, announced after Trumpâs April 2 move, escalated the tit-for-tat. Allies like the EU and Canada were prepping responses too. This isnât just Trump lashing out unpromptedâitâs a messy, reciprocal spiral. Investors are squeamish, yes, but not solely because of Trumpâs actions; global trade tensions share the blame.
In short, the rally doesnât just scream âtariffs bad.â It says âclarity good.â Trumpâs pause gave markets breathing room, and while your concerns about costs and carelessness hold weight, the dayâs events suggest he might be playing a longer gameâone investors, for now, are willing to bet on. Donât sell the farm, but donât burn the barn down yet either.