U.S. Treasury Secretary Scott Bessent spoke briefly after President Donald Trump announced a 90-day pause on reciprocal tariffs for over 75 countries while also increasing tariffs on Chinese imports. More specifically, Bessent said, “Do not retaliate, and you will be rewarded,” which sends a clear signal to countries that cooperation with the U.S. could lead to better trade terms. This also caused markets to stage a sharp reversal to the upside.
Unsurprisingly, Bessent praised Trump’s trade strategy by saying that the President’s tough approach encouraged more than 75 nations to come to the negotiating table. He also called the decision to escalate tariffs on China a result of its refusal to cooperate. It is worth noting that tariffs on Chinese goods were raised to 125%, up from earlier levels.
Earlier in the day, Bessent criticized China’s retaliatory tariffs by calling them a losing move. He said it was disappointing that China was not willing to negotiate and labeled the country “the worst offenders in the international trading system.” His comments highlight the administration’s belief that their aggressive stance is pushing most nations to engage while isolating China for its lack of cooperation.
Is SPY a Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on the SPDR S&P 500 ETF Trust (SPY) based on 409 Buys, 87 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average SPY price target of $688.17 per share implies 26.8% upside potential.
