Following the lowering of reciprocal tariffs, the White House announced that it would slash duties on de minimis shipments from China by more than half.

April’s inflation report could show tariffs’ effects, although some analysts say businesses are working through stockpiled inventory and are hesitant to raise prices yet.

Tamer-than-expected inflation and a significant de-escalation of a U.S.-China trade war are easing fears of a sharp squeeze on American households and businesses in coming months, prompting Wall Street firms to pare predictions of a recession and giving the Federal Reserve room to leave interest rates where they are.

Joe Janzen, an agricultural economist at the University of Illinois, said the commodity markets have largely shaken off the initial shock of the trade war, including Trumps’ declaration of April 2 as “Liberation Day,” when he announced stiff worldwide tariffs.

Federal Reserve Chair Jerome Powell, who Trump recently said he’s considering firing, has a 37% approval rating, beneath the lowest approval ratings for the previous three federal reserve chairs, but above his 36% average approval rating in 2023, Gallup found.

Markets are in a cheery mood after trade talks between the US and China in Switzerland over the weekend yielded what both sides described as encouraging progress. Treasury Secretary Scott Bessent hailed "substantial progress" following "productive" discussions.