Trump takes a step back from Liberation Day's steepest tariffs

President Trump's recent tariff orders represent a recalibration of his initial global trade system. He has significantly lowered many of the highest proposed tariffs, opting for a more manageable 10%-15% range. This new framework appears to be broadly acceptable to major trading partners. While tariffs are now higher than in over a century, the revised rates are seen as a cost of doing business rather than a complete barrier. Countries were categorized into groups, receiving different tariff rates based on their trade balance with the U.S. Many nations saw substantial reductions from April's levels, though some, like Switzerland and certain African nations, experienced increases. Canada's tariffs were raised, but goods under the USMCA agreement remain exempt. Mexico received a temporary extension to negotiate a better trade deal. The legal authority for these sweeping tariffs is currently under judicial review, with questions raised about classifying long-term trade deficits as emergencies. Companies and investors are now assessing the impact of these new orders, with markets having largely adapted to the current tariff regime. However, some experts predict a future softening of the dollar and financial markets due to potential declines in domestic demand. These revised orders signal a more lasting shift towards an environment where exporting to the U.S. involves significant costs.