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LARRY KUDLOW: The markets applaud Trump's reciprocal tariffs

1. Trump outlines trade policy for fair practices and lower tariffs. 2. Focus on reciprocity, targeting European auto tariffs and VAT. 3. Past tariff rates: India 6x, Mexico 3x, China nearly 5x US rates. 4. Stock market rallied 400 points on news of reciprocal tariffs. 5. Future actions are pending a review by Commerce Secretary.

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FAQ

Why Bullish?

Market optimism may rise from Trump's reciprocity approach, similar to past tariff negotiations that boosted stocks.

How important is it?

Trade policies directly affect market sentiment and economic performance, impacting S&P 500 companies reliant on global trade.

Why Short Term?

Immediate market reactions to announcements are typical; long-term effects depend on actual tariff implementation.

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