Stocks Surge as Trump Adjusts Tariff Strategy Ahead of ‘Liberation Day’

NEW YORK, March 24, 2025 — U.S. stock markets rallied on Monday as investors reacted to shifting tariff plans proposed by President Donald Trump. Following a Cabinet meeting, Trump indicated that tariffs, promised for April 2, would be more targeted than initially anticipated, providing some relief to Wall Street.

For over a month, the Trump administration had touted April 2 as a significant milestone dubbed “Liberation Day,” when various new tariffs would take effect. However, administration officials are now trying to temper expectations, suggesting that a narrower batch of tariffs may be announced next week, and more could come later. Trump stated tariffs would be introduced in the “very near future” but also mentioned he might offer some countries exemptions.

“We might be even nicer than that,” Trump said in a briefing.

The Dow Jones Industrial Average closed up 598 points, or 1.42%, while the S&P 500 increased by 1.76%, and the Nasdaq Composite rose by 2.27%. Investors expressed relief that the most damaging tariffs would not be implemented as quickly as feared, after Trump suggested potential reprieves for some nations.

Despite proclaiming April 2 as “Liberation Day,” when the U.S. would enact reciprocal tariffs that match foreign import taxes dollar for dollar, the planned tariffs seem to be more limited than previous threats suggested. Trump had originally announced 25% tariffs on all goods from Canada and Mexico, along with broad tariffs covering a wide spectrum of imported goods, including pharmaceuticals and automobiles.

According to reports from Bloomberg and The Wall Street Journal, these broad tariffs will not be enacted on April 2 as promised. A White House official confirmed no final decisions had been made and indicated upcoming tariff announcements would focus primarily on a select group of countries.

The targeted approach, which could involve about 15% of nations deemed as unfair trade partners, is a shift from Trump’s previous threats. Countries likely affected include Canada, China, Mexico, and several European Union members. This limitation represents a significant reduction from the initially proposed sweeping tariffs.

Trump’s comments at the Cabinet meeting added to market uncertainty, as he indicated that if product-specific tariffs are delayed, it would not be for long. “We need steel, we need pharmaceuticals, we need aluminum,” he stated.

In addition to the April 2 plans, Trump vowed to impose a 25% tariff on any country that purchases oil from Venezuela, labeling the nation as hostile to the United States. He made this declaration on Truth Social but provided no evidence for his claims that Venezuela was intentionally sending criminals to the U.S.

While many have raised concerns about the volatility stemming from Trump’s ongoing tariff threats, investors appeared to dismiss the potential impact on Monday, as market indicators showed a notable upturn. The yield on the 10-year Treasury bond rose to 4.33%, reflecting confidence as investors shifted from bonds to equities.

Despite the day’s positive market performance, analysts warn that ongoing uncertainty surrounding Trump’s trade policies continues to affect consumer confidence. The Cboe Volatility Index, a measure of market risk, slid over 8% to its lowest point of the month.

As the April date approaches, the administration’s tariff discussions remain fluid. Key lawmakers and officials from the Trump administration are expected to meet on Tuesday to further discuss budget frameworks that may influence the legislative environment surrounding these tariffs and other economic measures.