In recent days, uncertainty surrounding President Trump's trade negotiations poses a challenge for the markets. While the president has been clear that he does not favor simple tariff reductions, his stance on what he desires in a final deal has been inconsistent as talks with Japan and South Korea commence, with promises of negotiations with other countries to follow.

The various and shifting positions taken by the president, possibly as a strategic move before negotiations, add to the mixed signals for the already nervous markets. Compounded by conflicting messages from Trump's advisors, uncertainty looms over tariff deadlines this week, including a potential announcement of additional tariffs on Chinese goods and the implementation of reciprocal tariffs.

Despite efforts by Treasury Secretary Scott Bessent to focus Trump's messaging on negotiation possibilities, the president's statements have varied, offering a mix of openness to different issues on the table and a more rigid focus on trade deficits as the non-negotiable bottom line. This inconsistency in messages creates further confusion for market participants.