Markets hesitate as Trump hints at big announcement and trade talks 📌

17:31 6 May 2025

Donald Trump struck a mix of assertive and diplomatic tones in fresh remarks on trade and foreign relations. He reiterated America’s “abundance of energy” and openness to friendship with Canada, dismissing the idea of it becoming a 51st state while leaving the door open to possible tweaks to USMCA, which he called both “effective” and “transitional.” Responding to Canada’s firm stance against any sale talk, he added, “Time will tell.” He also teased a major announcement coming as soon as Thursday or on Monday at the latest, but not necessarily related to trade.

On China, Trump claimed tariffs are reversing the U.S. trade deficit and said Chinese ships are “turning back in the Pacific,” with Beijing eager to negotiate. He insisted the U.S. is “losing nothing” by not trading with China and reaffirmed his desire to protect the domestic auto industry. The US500 index briefly rebounded on the comments but has since erased those gains.

The market reaction — a brief rise followed by a reversal — indicates higher investor expectations than just a week ago.
After such comments last week, we would likely have seen a green session. But now, markets are expecting specifics, not comforting remarks from the Trump administration.

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