Markets had dismissed tariff risks under the assumption that Trump would follow an earlier pattern and back off, in what became known as the so-called TACO trade. That allowed stocks to reach new record-high territory recently, marking a stunning rebound from the collapse triggered by his “Liberation Day” reciprocal tariffs in April.

Late Thursday, Trump posted a letter threatening to impose 35% tariffs on goods from Canada. The barrage of letters began on Monday, setting tariffs of 25% on goods from Japan and South Korea and 50% on Brazil.

Live Updates Live Coverage Has Ended Friday Wrap-up 4:02 pm The Vanguard S&P 500 ETF closed at 573.26 on Friday, down 0.3% for the day and down 0.5% for the week. Elon Musk is in Hot Water in France 1:15 pm France is reportedly probing allegations that X (nee Twitter) manipulated its algorithms for the