Trump's Reciprocal Tariffs May Be Narrower Than Expected, Reports Suggest

As the April 2 deadline approaches, potential exemptions and sector-specific exclusions are raising cautious optimism in markets but leaving global uncertainty unresolved.

President Trump remains committed to imposing reciprocal tariffs on April 2, targeting countries with high tariffs on U.S. goods, but recent reports indicate possible exemptions for certain sectors and nations.
The tariffs are expected to focus on a group of about 15 countries, dubbed the 'Dirty 15,' with significant trade surpluses with the U.S., while sectors like autos, semiconductors, and pharmaceuticals may be excluded.
Global markets are reacting positively to hints of a more targeted approach, with U.S. stock futures rising and major indexes recovering from a weeks-long selloff.
Economic analysts and the Federal Reserve continue to warn of inflation risks, economic uncertainty, and potential stagflation as a result of the tariff policy.
Key trading partners, including the European Union and China, are preparing responses, with the EU delaying retaliatory measures and China engaging in dialogue with U.S. business leaders.