The first full week of trading in 2025 was set to open with U.S. stocks higher after a Washington Post report said Trump’s tariff plans could ease as his administration takes office this month.
as the The Post’s Jeff Stein reports:”[Trump’s] The allies are still discussing plans to impose import duties on goods from each country, the people said. But instead of applying tariffs to all imports, current discussions focus on applying them only to certain areas deemed important to national or economic security…”
After winning his election in the fall, Trump pledged to impose a blanket tariff of up to 20% on all imports — from all trading partners — with tougher levies targeted at certain countries like Mexico, Canada and China.
The stock market’s shaky finish to 2024 was due, in part, to uncertainty about these policies and Trump’s broader economic agenda in 2025.
Last month, the Fed revised its outlook for a rate cut in 2025, With Chair Jay Powell Said during a press conference that the impact of tariffs during Trump’s first administration — which prompted a more aggressive interest rate hiking cycle and a market selloff in 2018 — was “a good starting point” for thinking about Trump 2.0.
Ahead of Monday’s open, futures on the tech-heavy Nasdaq rose nearly 1% while S&P 500 futures rose 0.8%. Dow futures were up 0.4%.
The dollar index, which has hit a two-year high since Trump won the election, was off about 1% early Monday.
