President Trump’s “Liberation Day” speech on April 2 announcing sweeping tariffs sparked market fears, but six months later, investors have calmed down due to carve-outs and exemptions. Even new tariffs barely move markets now. European equities closed higher, and JPMorgan sees limited impact from pharma tariffs.

Analysts note that many large-cap biopharmaceutical companies are avoiding exposure, and the White House defends tariffs as national security measures. Consumers have proven resilient, and the market’s muted response reflects their ability to adjust. Economists predict potential inflation later but so far, data remains stable.

Investors rely on the “TACO trade” pattern where Trump threatens tariffs but often pulls back. The calm markets reflect the effective average tariff rate staying below headlines, thanks to exemptions and carve-outs. Economists warn of potential price pressure later, but current inflation data remains stable.

Read more at Yahoo Finance: Trump’s latest trade war turns into another TACO salad for Wall Street