Stocks Rebound as Trump Opens Trade Talks with Japan

After a volatile week sparked by President Donald Trump’s aggressive new tariff strategy, the stock market showed signs of life Monday and Tuesday driven largely by optimism surrounding fresh U.S.-Japan trade negotiations.

The bounce was immediate. The Dow Jones surged 3.5% in early Tuesday trading before dipping slightly in the afternoon. The S&P 500 jumped 3.6%, and the Nasdaq led the pack with a 4.5% climb, all spurred by investor hopes that Trump’s hard-nosed tactics may lead to favorable deals rather than prolonged economic pain.

The turnaround began as President Trump announced talks with Japanese Prime Minister Shigeru Ishiba to kick off a new round of bilateral trade negotiations. “Countries from all over the World are talking to us. Tough but fair parameters are being set,” Trump posted on Truth Social. “Spoke to the Japanese Prime Minister this morning. He is sending a top team to negotiate!”

U.S. Treasury Secretary Scott Bessent will lead the American delegation. His involvement signaled to markets that the administration is taking a serious, high-level approach to negotiations. According to market analysts, this kind of engagement suggests that Trump’s tariff push rolled out as the “Liberation Day” initiative last week is as much a negotiation tactic as it is a policy shift.

Asian markets echoed the optimism. Japan’s Nikkei index surged 6%, a major boost reflecting confidence that the two economic powerhouses could strike a deal. European and U.S. markets followed suit.

Adding fuel to the rally, Trump signed an executive order reopening the door to a potential Nippon Steel acquisition of U.S. Steel, a nearly $15 billion deal previously blocked by the Biden administration in January. While Trump had initially opposed foreign ownership of the iconic American company, he now appears open to Japanese investment under strict conditions. The order gives CFIUS 45 days to review and make a recommendation.

This is the difference between leadership and legacy politics.

Where Joe Biden blindly rejected the deal to appear “pro-labor,” Trump is doing what he’s always done best negotiating from strength while keeping America’s interests at the forefront. The markets can see it. So can our allies. This isn’t globalism. It’s America First, and it's working.

• The Dow, S&P, and Nasdaq all surged between 3.5–4.5% on early Tuesday optimism.

• The Nikkei soared 6% as Japan eyes a breakthrough with the U.S.

• Trump’s strategic flexibility may salvage a $15 billion steel investment blocked under Biden.

While the left continues to panic over Trump's “tough talk,” the economy responds to results. It’s exactly this kind of bold, pro-American leadership that rebuilds confidence not only in the markets, but in our future.

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