Trump Offers Some Breathing Room on the Tariff File

Trump avoids imposing tariffs on day 1, calming markets

Highlights

• Trump avoids imposing tariffs on day 1, calming markets

• Seven years of profit growth are embedded in current stock prices (extreme!)

• Constructive CPI data green light a BoC rate cut next week

• No, this is not the Roaring Twenties

Key Takeaways

President Trump’s Initial Policy Moves

• The situation obviously is fluid, but what had equities and Treasuries excited — which was reflected in yesterday’s U.S. dollar giveback — was that on day one, President Trump did not add broad-based tariffs to his litany of executive orders.