Several quick and visual observations from Goldman head trader John Flood and JPM's Market Intel desk chief Andrew Tyler.
Bottom line: The President paused the higher reciprocal tariff rates for 90 days on all countries aside from China (the cumulative tariff on China is being increased to 125%, effective immediately). The 10% blanket tariff remains in effect for everyone. This was the potential off ramp traders have been looking for (and which we warned would spark an epic rally, see "Exhausted Goldman Traders Warn "Any Positive Headlines Are Met With Explosive Reactions"). WSJ's Nick Timiraos writes "Where things stand, one week after Liberation Day"
- Tariffs on China will go to 125% from 104% on Wednesday and from 20% on Tuesday.
- Tariffs on all other countries (except Russia, North Korea, and Belarus) will be at 10% for the next 90 days
- Tariffs on steel and aluminum are 25%
- Tariffs on imported cars are 25%
- Canada and Mexico face tariffs of 25% on goods that aren't eligible for USMCA
