U.S. stocks rebounded Tuesday morning as the markets adjusted to the new reality under President Trump’s tariff plans and investors hoped for bilateral deals that could reduce trade barriers.
The Dow Jones Industrial Average was up nearly 1,300 points at the opening bell after a three-day selloff spared by Mr. Trump’s decision to slap a 10% tariff on all imports and heftier levies on specific countries, citing trade deficits. The Dow had fallen by more than 3,000 points since Thursday.
The S&P 500 and Nasdaq were also firmly in positive territory after a few roller-coaster days on Wall Street. Both markets had fallen by more than 8% since Thursday.
The easing in volatility coincided with signs that the White House will strike deals with individual trading partners to lower tariffs and other impediments to trade.
Mr. Trump, posting on Truth Social, said he had a productive call with South Korea, following similar assertions about other Asian trading partners.
The U.S. and China are wielding retaliatory tariffs against each other. Mr. Trump said China probably wants a deal, “but they don’t know how to get it started.”
SEE ALSO: Trump threatens 100%-plus tariffs on China as trade battles intensify
“We are waiting for their call,” he said.
Tariffs are a tax or duty paid by importers on the goods they bring in from foreign markets.
For years, Mr. Trump has focused on tariffs as a way to give the U.S. leverage in trade deals. He is laser-focused on trade imbalances with other countries, in which the U.S. buys more goods from a trade partner than it sells to that country.
His decision to impose huge tariffs caught some investors, including his supporters, off guard, and European allies said they are prepared to retaliate if negotiations fail.
“We are mourning the United States that we knew,” Stephane Boujnah, the CEO of the Euronext stock exchange, told France Inter radio. “Now it looks more like an emerging country.”
