Trump hints at softer tariff wave with exemptions for ‘a lot of countries’

U.S. President Donald Trump said on Monday that the sweeping tariffs set to take effect on April 2 could be more narrowly focused than initially expected, as he may “give a lot of countries breaks.”

The tariffs, which the president has dubbed “Liberation Day” for the world’s biggest economy, are part of his ongoing effort to address trade imbalances and practices that Washington deems unfair.

Trump’s statements were positively reacted by the markets, with all major indices on Wall Street closing higher, with the tech-rich Nasdaq ending the day up 2.3%, the S&P 500 rising 1.76%, the Dow Jones increasing 1.42%, and the NYSE up 1.28%.

The trade news was “definitely the main cause” of the rise in Wall Street stocks, Steve Sosnick from Interactive Brokers told Agence France-Presse (AFP).

“Investors clearly hate the idea of tariffs,” he said. “So any news that implies that the burden of tariffs will be lighter than expected will be taken as a positive by the market.”

Uncertainty surrounds April 2 tariff rollout

Trump’s initial strategy involved reciprocal tariffs aimed at both allies and adversaries alike, in line with his push for a more balanced trade relationship. He also signaled that sector-specific duties, potentially targeting industries such as automobiles, pharmaceuticals, and semiconductors, would be part of the plan on April 2.

However, according to a White House official, these sector-specific tariffs may or may not be implemented on that date, as the situation remains fluid. The official reaffirmed that reciprocal tariffs would still go forward as planned.

These measures would impact countries with trade imbalances with the United States, which Trump has long criticized for “ripping off” America through unfair practices.

Treasury Secretary Scott Bessent, in an interview with Fox Business last week, elaborated on the government’s approach, noting that Washington would engage trading partners with a clear indication of the tariff levels and non-tariff barriers it seeks to address.

Countries that cease their unfair practices could potentially avoid the “tariff wall,” Bessent said. The focus would be on a select group of nations—about 15% of U.S. trade partners—whom Bessent described as the “dirty 15.”

The latest developments come as financial markets responded positively to hopes of a more targeted rollout of tariffs.

At the same time, U.S. trade partners are continuing negotiations with Washington as the April 2 deadline approaches. EU Trade Chief Maros Sefcovic is scheduled to meet with U.S. counterparts, including Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer, in a bid to avoid further escalation.

While Trump has promised significant tariffs, it remains to be seen how the final measures will unfold and whether the sector-specific levies will be implemented as originally planned.