May 5, 2025- Since Donald Trump announced his “Liberation Day” tariffs on the afternoon of April 2, the most important markets for the U.S. economy have weakened significantly. The stock market, by contrast, has risen, according to Axios. While financial markets are betting the U.S. and China will pull back from an all-out trade war and that Trump will cut deals to avert higher tariffs on others, the sheer uncertainty of where this ends has become a major drag factor for the economy in itself, according to Reuters.