Markets Soar on Tariff Shift

FINANCE
Markets Soar on Tariff Shift

President Donald Trump announced a temporary reduction in tariffs to 10% on imports from most U.S. trade partners for 90 days, aiming to give room for new negotiations. This move came just hours after nearly 90 countries were hit with higher “reciprocal” tariffs under a new U.S. policy. However, Trump also sharply raised tariffs on Chinese imports to 125%, citing China’s “lack of respect” for global markets.

China responded by increasing its tariffs on U.S. goods to 84%. Trump claimed over 75 countries had already contacted U.S. officials to begin trade discussions. The markets responded positively to the news, with the S&P 500 jumping 7%—its largest one-day gain in five years—reversing four straight days of losses.

When asked about the reversal, Trump said, “They were getting yippy,” implying that market fears were overblown. Treasury Secretary Scott Bessent said this was always part of Trump’s strategy, despite previous White House denials.

Senate Minority Leader Chuck Schumer criticized the move as chaotic and reactionary, saying Trump was “retreating under pressure.” Commerce Secretary Howard Lutnick said he and Bessent sat with Trump as he wrote the announcement on Truth Social, calling it “one of the most extraordinary Truth posts of his presidency.”

The Supply Chain Crisis Is Escalating — But This Tech Startup Keeps Winning

Global supply chain chaos is intensifying. Major retailers warn of holiday shortages, and tech giants are slashing forecasts as parts dry up.

But while others scramble, one smart home innovator is thriving.

Their strategic move to manufacturing outside China has kept production running smoothly — driving 200% year-over-year growth, even as the industry stalls.

This foresight is no accident. The same leadership team that saw the supply chain storm coming has already expanded into over 120 BestBuy locations, with talks underway to add Walmart and Home Depot.

At just $1.90 per share, this resilient tech startup offers rare stability in uncertain times. As investors flee vulnerable companies, this window is closing fast.

SECURE YOUR POSITION BEFORE PRICES RISE

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FINANCE
Trump Eyes Treasury Yields, Not Stocks

President Trump seemed largely unfazed by the sharp stock market decline following his aggressive tariff rollout in early April. His real focus has always been on the 10-year Treasury yield—a benchmark that influences everything from mortgages and car loans to corporate borrowing. Trump believes this rate drives the economy more than the stock market does. Rob Arnott of Research Affiliates says bluntly, “Trump cares more about the 10-year Treasury than the stock market.”

After pushing the Federal Reserve for rate cuts, Trump got a brief win. By April 4, the 10-year yield dropped below 3%—the lowest since October. But the drop was short-lived. By April 9, the yield had surged to 4.5%, as investors fled U.S. bonds in response to the tariff shock. Foreign investors, who hold a third of U.S. Treasuries, were especially spooked, fearing inflation and instability.

This spike in yields also hit corporate borrowing hard, as credit spreads jumped. Economist John Cochrane warned inflation could soon rise sharply, with the Fed failing to act. Even with Trump’s recent tariff pause, fears linger. Investors remain wary that Trump’s protectionist agenda—and especially his 125% tariff on China—will keep pushing yields higher and threaten the stability of U.S. credit markets.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.