US President Donald Trump has introduced another round of new tariffs, lifting the average tax on US imports to its highest level since the 1930s. Despite initial market panic in April, when the president’s “Liberation Day” tariffs caused a global stock market plunge, investors have remained optimistic about the economy.
Experts say that Trump is implementing major tariffs without shocking the stock market, which is a surprising development given their impact on trade. However, economists warn that tariff effects could take weeks or months to play out and argue that it’s too soon to declare victory just yet.
The inclusion of carveouts has softened the blow of tariffs, with companies like Apple benefiting from exemptions due to their investment in US production. However, analysts say that investors are taking a risk by believing in the resilience of the US economy and assuming tariff-induced growth will be less severe than initially feared.
Markets are focused on other factors, such as the AI boom in the US and the impact of big tech earnings. The “Trump put” concept suggests that investors believe Trump will refine his approach if markets do plummet, rather than backing down entirely.
As data on inflation and the labor market approaches, investors await a better sense of how tariffs are impacting the economy. However, experts caution that the stock market and economy are not the same thing, and that investors should be prepared for potential economic shocks.
While Trump’s latest move has lifted average US import taxes to historic levels, markets remain cautious but optimistic about the economy’s resilience.
Source: https://edition.cnn.com/2025/08/11/business/stock-market-wall-street-trump-tariffs-taco