U.S. stocks are increasing due to a trade agreement that reduces tariffs on Japanese imports. The S&P 500 and Dow Jones Industrial Average reached new highs, with the Dow up 469 points. In Tokyo, the Nikkei 225 surged 3.5% as President Trump announced a 15% import tax on Japan, lower than the previously proposed 25%. Economic resilience persists despite tariffs, with U.S. consumer prices impacted less than anticipated. Companies like Hasbro face significant financial hits, illustrating the tariffs' effects.
"It's a sign of the times that markets would cheer 15% tariffs. A year ago, that level of tariffs would be shocking. Today, we breathe a sigh of relief."
"The main lesson about tariffs so far is that passthrough to consumer prices is tracking somewhat lower than in 2019," according to Goldman Sachs economist David Mericle.
Trump has proposed stiff taxes on imports from around the world, which carry the double-edged risk of driving up inflation for U.S. households while slowing the economy.
The S&P 500 was 0.7% higher, coming off its latest all-time high, with the Dow Jones Industrial Average up 469 points, or 1.1%.
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