Trump Says There Is No Longer A Tariff Issue

Summary

President Trump stated that on the subject of tariffs, “this problem no longer exists” Zhitong. He clarified that tariffs will “remain as they are,” and that the US will be able to generate more revenue from them . This follows his recent claim that tariffs have reduced the U.S. trade deficit by 78% MSN. He also commented that global tariffs are generally higher than those charged by the U.S. . Following his remarks, emerging market currencies strengthened, with the Brazilian Real hitting a session high .

Impact Analysis

Don’t misread this as a dovish pivot. Trump isn’t saying he’s removing tariffs; he’s declaring victory and reframing them as a permanent, successful policy. He’s essentially saying the ‘issue’ is resolved because his policy worked, pointing to his recent (and questionable) claim about the trade deficit reduction MSN. The real signal here is that the status quo is the new normal. For companies that have been absorbing tariff costs, there’s no relief in sight. This reinforces the long-term headwind for importers and firms with heavy reliance on Chinese manufacturing that haven’t already shifted supply chains.

The market seems to be taking this as an end to escalation, not the tariffs themselves, hence the relief rally in currencies like the Brazilian Real . But for equities, the play is to stay short importers with weak margins and long the onshoring beneficiaries. He’s telling us to stop pricing in any future tariff rollbacks.