Overview

• President Trump has floated the possibility of exempting the auto sector from 25% tariffs, following recent exclusions for smartphones, computers, and other electronics.
• Markets showed cautious optimism, with modest gains in U.S. equities and a recovery in Treasury yields, though volatility persists.
• The administration is actively investigating potential tariffs on pharmaceuticals and semiconductors, citing national security concerns.
• Analysts remain divided on the broader economic impact, with some warning of recession risks while others see a potential for moderated costs due to targeted exemptions.
• Investors continue to face uncertainty as rapid policy shifts leave businesses and consumers unclear about the long-term trade and economic outlook.