Tariffs, the Congress and the Markets

With about an hour to go on the trading day, as i begin to write this, the market has rebounded back to positive territory, after being down almost 200 points in the session. Equally, Nasdaq and the S&P are poised to enter positive levels.

 

The earlier drop was caused by speculation that Bitcoin would tumble. But that did not happen. 

And Treasury Secretary Scott Besset, in an interview, said President Trump will be "intimately involved" in the trade deals with each of 18 important trading partners excluding China, and it will be important to reach agreements in principle soon. Later, it was announced that a deal with India, the new provider of Apple iPhones, was “imminent”.

In addition, President Trump posted the following on Truth Social: “When Tariffs cut in, many people's Income Taxes will be substantially reduced, maybe even completely eliminated. Focus will be on people making less than $200,000 a year.”

 He continued, “Also, massive numbers of jobs are already being created, with new plants and factories currently being built or planned. It will be a BONANZA FOR AMERICA!!! THE EXTERNAL REVENUE SERVICE IS HAPPENING!!!"

In an interview with Time Magazine released Friday, Trump said he made "200 deals" on tariffs and that the arrangements will be "finished" in the next three to four weeks.

While Republican Senator Rand Paul and many Senate Democrats, led by Senator Ron Wyden, are considering the President’s ability to apply tariffs, he has shown tariffs are working to bring trade with other trading partners to a fairer and more level trading field.

And of course, the Libs in the Media, and Democrats in the House and Senate are cheering against the President with some in the Congress holding a sit-in on the steps of the Capital like they did during Trump's first term. Like infants who whine and pull tantrums because they don’t get their way.

At the closing bell, the Dow was up 114 to 40,227, the S&P was up almost 4 at 5,528 and the NASDAQ was down 17 at 17,366.