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Why is stock market not tumbling after China raised tariffs?

P
Apr 11, 2025 · 16:18

Today China increased its tariffs to 125%. At this point, goods between the U.S. and China will cost so much that it's going to end virtually all trading between the two. That will be devastating and will increase inflation here, hurt many American companies that export to China, kill jobs, on and on. So why is today's news not hurting the stock market? It's actually up at the time I'm writing this. Do folks anticipate that Trump will back down and work a deal with China soon in light of this? Is there something I'm missing?