Has Trump's tariff threat softened? Reports indicate that the reciprocal tariff policy on April 2 may retain some "flexibility."

According to media reports, Trump stated last Friday in the Oval Office of the White House:

"Many people come to me to talk about tariffs, and many ask if they can get exemptions, but once you open the door for one person, you have to open it for everyone."

"I will not change. But the word flexibility is important. Sometimes it is flexible. So there will be flexibility, but basically, it is reciprocal."

Trump also referred to April 2 as the "Liberation Day" for the USA:

"April 2 will become the Liberation Day for the USA. We have always been taken advantage of by every country in the world, whether friends or enemies."

Internal sources have revealed to the media that these tariffs will not be applied to all countries globally, but rather target what Trump considers trade "abusers," including the European Union, Mexico, Japan, South Korea, Canada, and others.

This move by Trump may be aimed at alleviating market concerns. According to CCTV news, from the beginning of the Trump administration, a series of tariff policies have been rolled out, and concerns about a "Trump recession" have significantly dragged down the stock market in the USA.

Since Trump took office as President of the USA on January 20, up until the market close on March 19, $Dow Jones Industrial Average (.DJI.US)$ the decline reached 3.50%, $S&P 500 Index (.SPX.US)$ the decline reached 5.36%, $Nasdaq Composite Index (.IXIC.US)$ the decline reached 9.57%. Moreover, the market value of the enormous "Magnificent 7" in the US stock market has recently plummeted. US media reported on March 14 that over the past three weeks, the market cap of the "Magnificent 7" has evaporated by 2.7 trillion USD.

The "15% of countries" has become a primary target.

US Treasury Secretary Becerra hinted during an interview with Fox Business Channel last week that the 15% of countries is a major target of the tariff policy:

"It accounts for 15% of the countries, but it constitutes a large part of our trade volume."

Kevin Hassett, Director of the National Economic Council under Trump, also tried to calm market concerns, stating:

"The market expects huge tariffs to be imposed on every country... The market needs to change their expectations, as not all countries are deceiving us in trade, only a few countries, and these countries will face some tariffs."

Tariffs on Autos remain undecided, and Steel and Aluminum tariffs may not be "simply additive."

It is worth noting that Trump previously promised to impose tariffs on specific industries such as Autos, Semiconductors, Pharmaceuticals, and Lumber all at once.

However, according to information provided to the media, tariff policies for these industries are not planned to be launched together during the "Liberation Day" event on April 2.

This could be good news, especially for the Autos Industry. Although the auto tariffs are still under consideration, Trump has not ruled out the possibility of them being introduced at another time. However, excluding them from the announcement on April 2 will give the Autos Industry some breathing room by avoiding a triple tariff hit.

In addition, in an interview last week, Bessent also stated that tariffs on Steel and Aluminum may not simply be added to the existing tariff rates of each country:

"As April 2 approaches, I will have a better determination. Therefore, these tariffs may be 'cumulative'."

Editor/Rocky