Liberation Day II

Liberation Day I occurred on Wednesday, April 2 after the stock market closed, when President Donald Trump imposed reciprocal tariffs on America's trading partners. The immediate reaction was what we called "Annihilation Days" in the stock and bond markets until April 9, when Liberation Day I was postponed until July 9 (chart). Today, Trump announced reciprocal tariffs again on 14 countries. Their governments have until August 1 to respond before the tariffs are imposed. This time, the initial reactions of the stock and bond markets to Liberation Day II have been relatively muted, so far.

In an April 11 NBC interview, Peter Navarro, a White House trade adviser, claimed that "90 deals in 90 days" was possible. So far, there have been only two trade deals announced, with the United Kingdom and Vietnam. There is also a framework agreement with China.