Tariff U-turn risk now part of the trade

Yesterday, President Donald Trump announced his "Liberation Day" tariff strategy, introducing a universal 10% tariff on all imports, with higher rates for specific countries.

Despite Commerce Secretary Howard Lutnick’s claim that President Trump “won’t back off,” several pressures could still force a reversal before their April 9 implementation.

Markets have already reacted negatively, and trading partners are signalling how they might retaliate.

French President Emmanuel Macron has urged European companies to suspend investment in the U.S. In Canada, Prime Minister Mark Carney said he is planning to pivot toward more reliable partners like Australia, the U.K., and France.

A U-turn by the Trump administration would likely be framed as a strategic win rather than inconsistent policy making—but for traders, volatility may remain a welcome constant from this administration.