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Market whiplash on tariffs this week shows the limits of listening to anyone but Trump

Published 1 week ago3 minute read

A series of rapid-fire tariff developments this week left markets on edge in part because of sharp shifts from Trump but also conflicting signals from his top advisers about what the president planned to do.

Trump’s team offered a variety of scenarios throughout the week of what to expect, only to see Trump himself sometimes diverge on key decisions and details.

Commerce Secretary Howard Lutnick was particularly prominent with at least seven television appearances in recent days.

"I think markets need to be aware that no one can reliably speak for Trump given how much decision-making has been centralized in the president personally," said Tobin Marcus, the head of US policy and politics at Wolfe Research.

The confusion was in evidence all week and also moved in unpredictable directions.

Early in the week, as Trump was considering whether to let the tariffs kick in, Lutnick sent signals that they could be tempered before implementation.

Read more: What Trump's tariffs mean for the economy and your wallet

But then, after the duties came in at full force, Lutnick described Trump’s approach as looking to meet Canada and Mexico halfway before then saying, "No, no, no, I didn't say that,” on Wednesday in a Bloomberg interview when presented with his prior comments.

WASHINGTON, DC - MARCH 06: U.S. President Donald Trump speaks as he signs executive orders in the Oval Office of the White House on March 06, 2025 in Washington, DC. President Trump signed a series of executive orders, including lifting 25% tariffs for all goods compliant under USMCA trade agreement, terminating the security clearances of those who work at the law firm Perkins Coie, combating drug trafficking at the northern border as well as announcing a $20 billion investment by shipping giant CMA CGM for U.S. infrastructure and jobs. (Photo by Alex Wong/Getty Images)

President Donald Trump speaks to reporters after signing executive orders in the Oval Office of the White House on March 6. (Alex Wong/Getty Images) · Alex Wong via Getty Images

In the end, Trump offered a plan that few saw coming as he backtracked perhaps more than halfway with a one-month delay on tariffs on products that are traded under the rules of the US-Mexico-Canada Agreement.

It’s a move that could see over 80% of goods exempted from duties for the time being.

Along the way, stocks yo-yoed on the uncertainty with the Nasdaq even entering into a correction in a week that now appears poised to end with tariff levels on Mexico and Canada less changed than expected after Trump’s significant reversal on both countries.

"It's very hard for the market to rally sustainably under these conditions," Ahmed Riesgo, the chief investment officer at Insigneo, said in a Yahoo Finance interview Thursday as the week neared an end, noting the whipsaw from the White House had left markets “exhausted.”

"A lot of investors are simply throwing their hands up and saying, 'I'll come back in when there's more certainty,'" he added.

One country not in for relief this week was China, which saw 10% blanket duties on their goods double to 20%.

Matthew Holmes of the Canadian Chamber of Commerce added in a statement that “constant threats and economic uncertainty have taken their toll. We see it in delayed business investments, shaky consumer confidence, stalled capital flows, and a volatile stock market.”

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