Market 'relief' after US court blocks many of Trump's tariffs, analyst says

WCCO-AM / 830 WCCO

Stocks were rising on Thursday after a U.S. court blocked many of President Donald Trump’s sweeping tariffs, though the gains got less strong as trading progressed from Asia to New York.

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00:00The market reaction in the short term, as we've seen, is relief.

00:11Generally, if tariffs go down, markets are happy.

00:14And conversely, if we see tariffs going up, markets are not happy.

00:18But how permanent this turns out to be, certainly in the context of the other measures, which

00:23haven't been challenged, is really the key question.

00:25Well, I mean, there's a broad range of tariffs that have been put into place.

00:31And in particular, if you think about higher tariffs, say, on steel and aluminium, for example,

00:36those aren't affected by this ruling.

00:38So you still have tariffs that are in place.

00:41We're certainly at a level with higher tariff levels now than we had prior to the administration

00:45coming into power.

00:47And then it will be the negotiations between the administration and the courts to see whether

00:54not these ones, particularly around the basis on the unusual circumstances, whether those

01:04can be put back.

01:06Perhaps at the same time, we know how important tariffs are to Trump's world view.

01:11He's been talking about this for decades.

01:13So as you point out, you imagine the administration is not going to give up.

01:17And from that point of view, I would think the other countries that are negotiating with

01:20the U.S. might think is for sticking with the negotiations, because in the end, we imagine

01:25it is going to be something that the U.S. either can agree or disagree with, depending on

01:30how the partners react.

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