The US stock market staged a brief rally on Tuesday before sinking amid renewed tough talk from administration officials about tariffs. The S&P 500 index closed down 1.5% to bring its total loss since the mid-February start of President Trump’s trade offensive to nearly 20%, marking an official bear market.
Treasury Secretary Scott Bessent told CNBC that nearly 70 countries had approached the US about negotiating over trade barriers, sparking hopes for a brief respite from the ongoing trade tensions. However, President Trump quickly fueled the optimism with a social media post about a potential bargain with South Korea’s acting president, only to see the market rebound soon fizzle.
Administration officials, including Chief Trade Negotiator Jamieson Greer, described the nation’s $1.2 trillion trade deficit as an emergency that required “urgent” efforts to reshape the US economy. However, lawmakers and business leaders have voiced concerns about the potential costs of the tariffs to consumers and businesses.
Despite criticism, foreign leaders continue to express eagerness to make deals with President Trump, citing the eagerness of countries such as Argentina, Vietnam, and Israel to drop their tariff and regulatory barriers to US exports. The administration is engaged in talks with Japan and South Korea, but there is no immediate prospect of talks with China, which has retaliated against US tariffs by imposing a 34% tariff on US goods.
The situation remains volatile, with some big-name tech stocks experiencing significant declines. Analysts characterized Tuesday’s morning rally as a natural reaction to weeks of declines, capped by the harshest three-day sell-off in years. Markets in several Southeast Asian countries suffered more losses than others, highlighting the vulnerability of global trade to any disruption.
As tariff negotiations begin, some analysts see markets “may be an important step closer to finding an equilibrium.” However, the situation remains uncertain, and investors continue to navigate a complex landscape of trade tensions and economic uncertainty.
Source: https://www.washingtonpost.com/business/2025/04/08/stock-market-tariffs