After Donald Trump's victory in the 2024 presidential election, Wall Street hurried into celebration mode, anticipating tax cuts and deregulatory measures. However, with new tariffs set to take effect on April 2, investors face questions and ambiguous forecasts.
Celebrations on Wall Street and Investor Expectations
Following Donald Trump's victory in 2024, investors anticipated an economic boom similar to post-2016. Optimistic about potential tax cuts and deregulation, traders expected these measures to accelerate economic growth.
Trump's 'Liberation Day': The New Trade Strategy
April 2 marks Trump's declared 'Liberation Day' as his new trade policy takes effect. The executive order allows for broad tariffs and removes public discussion requirements. Trump's economic team, including Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick, supports this initiative as a means to strengthen the economy.
Market Reaction and Tariff Policy Prospects
The market shows uncertainty as April 2 approaches, although new tariffs are seen as inevitable. Many still hope for moderation. Meanwhile, Congress has not actively moved to control presidential trade powers, despite growing pressure.
As April 2 approaches, both the market and the US administration recognize a point of no return. Washington and Wall Street must adapt to the new economic paradigm set by Trump.
