Trump Says ‘BE COOL’ as Markets Open Higher Despite China and EU Retaliatory Tariff Plans

Wall Street’s wild ride continued on Wednesday, with the S&P 500, Nasdaq, and Dow Jones all starting the day with healthy gains. The green opening follows overnight fears the market was headed for a catastrophic morning. after President Trump officially slapped a new 104% tariff on China.

President Trump urged Americans to “BE COOL!” on Truth Social as markets opened on Wednesday, saying “everything is going to work out well. The USA will be bigger and better than ever before!”

He then added moments later “THIS IS A GREAT TIME TO BUY,” followed by three exclamation points.

Some investors clearly felt the same way, with the S&P 500 jumping 1.12%, the Dow Jones rising 0.74%, and the tech-heavy Nasdaq increasing 2.05% after a half-hour of trading.

Wednesday’s early trading action comes after the president placed a 104% tariff on China at 12:01 a.m. ET on Wednesday, along with stiff tariffs on more than 180 other countries.

In retaliation, China said it was raising its tariff on American goods to 84%. China’s communist government, led by President Xi Jinping, is also considering a ban on American-produced films as another counterpunch to President Trump’s new tariffs.

The green start to the day is a welcome sight for Wall Street bulls, following several brutal days after the president’s unveiling of his “liberation day” tariff plan.

Markets opened strong on Tuesday, with the S&P 500, Dow Jones, and Nasdaq all jumping more than 3.4% in early trading, on the news President Trump was negotiating trade deals with about 70 countries. But the markets swiftly U-turned about midway through the day, after White House Press Secretary Karoline Leavitt confirmed the U.S. would be imposing its tariff on China. By the end of the day, all three major indexes had dropped between 0.84% and 2.15%; for the S&P 5o0, it was the biggest single-day reversal since the 2008 financial crisis.

Apple, which saw $1 trillion wiped from its market cap in the past four trading sessions, has increased 3.96% in early trading on Wednesday to $179.24 per share.

Not everyone is optimistic Wednesday’s gains are a harbinger of good things to come, though. JP Morgan Chase CEO Jamie Dimon said the U.S. is “likely” headed for a recession if the current tariff plan remains in place. Treasury Secretary Scott Bessent, as well as DOGE boss Elon Musk, are two Trump advisors who have been urging the president to reconsider his plan and make deals with other countries. Leavitt, meanwhile, said on Wednesday that countries are “falling over themselves” to cut deals with the U.S. It will be worth watching if any deals materialize — and how the markets react — as Wednesday unfolds.

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