This seems to be the “theme” with Trumps tariffs.

Threaten tariffs and say they will go live in a month, market falls.

As the week go by leading up to the tariffs, market rebounds anticipating they will not actually go into effect.

Tariffs actually go into effect & the market falls.

Few days after they go into effect, Trump comes out and says they reached a deal and they are no longer on the table…

Expectations vs reality.

When you sound tuff and act tuff, other countries or whoever is on the other side of the negotiation will view you as not willing to bend the knee or compromise.

This turn pressures countries to make deals knowing that Trump means tariffs when he says it.

Kinda like how Jerome Powell at the Fed did things when we were in the high inflation period last year & the year prior.

Even though inflation was coming down, he never gave the public signal that they were considering cutting, until the last second.

He didn’t want the public to think he was not serious because expectations are just as important as reality.