Trump administration officials have made efforts recently to communicate that markets might be exaggerating the expected scale and extent of reciprocal tariffs set to be implemented in just over a week. This move comes amidst concerns that investors could face surprises when "liberation day" arrives on April 2.

However, the attempt to reassure markets raises uncertainties, including whether President Trump is open to adjusting the immediate tariff plans and how much the recent signals differ from the official plans announced earlier. The weekend saw reports suggesting a narrower scope of tariffs to be revealed on April 2, offering some nations and industries more relief than initially anticipated, while others may still face challenges.

This shift in strategy from Trump's team has been anticipated by trade experts, as the investigation is country-centric rather than industry-specific, making delays in implementing sector-specific duties more likely due to legal procedures. Despite this positive news, the upcoming tariff deadline remains a significant concern for market observers, as tariffs are a key factor influencing stock performance.

Pangaea Policy's Terry Haines highlighted that investors are closely watching April 2 for potential market impacts that could vary across different sectors. He also emphasized upcoming challenges for markets, such as the debt ceiling and uncertainty surrounding tax cuts. This period is expected to be particularly challenging economically and geopolitically for the Trump administration.

The White House initiated efforts to manage expectations last week to prepare markets for the upcoming developments.