Following a downturn, a surge is on the horizon? President Donald Trump claims his tariffs will spark a stock market boom, yet investors are looking for proof that he’s open to striking trade agreements. Tellingly, Trump suggested he was open to deals, telling reporters “it depends” what other countries are willing to offer.
Barron’s:
Governments around the world have largely held off on retaliating so far, perhaps convinced the White House will relent, with the notable exception of China, which said Friday it would impose additional tariffs of 34% on all U.S. goods. Maybe other nations are paying attention to Trump’s son Eric’s claim that “The first to negotiate will win” in a post on social-media site X. Alternatively, they may just be taking their time before reacting to a complex situation.
I wouldn’t want to be the last country that tries to negotiate a trade deal with @realDonaldTrump. The first to negotiate will win – the last will absolutely lose. I have seen this movie my entire life…
— Eric Trump (@EricTrump) April 3, 2025
Trump’s personal and political history strongly suggests he is always open to a deal so long as it happens on his terms. But the choice to impose reciprocal tariffs means a series of bilateral negotiations, complicating hopes for a quick recovery.
Trump has so far shocked the market with his willingness to allow stocks to drop. Negotiation and an eventual rebound is still the most likely outcome but that doesn’t mean there won’t be a painful wait to get there.
MacDailyNews Take: It’s only painful to those who panic and sell, doing exactly the opposite of what smart investors, who’ve built a strong cash position precisely for moments like this, are doing.
Be fearful when others are greedy, and greedy when others are fearful. – Warren Buffett
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