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- 3 takeaways as investors survey another tariff delay</p>
<p>Hamza ShabanJuly 9, 2025 at 6:00 PM</p>
<p>This is The Takeaway from today's Morning Brief, which you can sign up to receive in your inbox every morning along with:</p>
<p>The Chart of the Day</p>
<p>What we're watching</p>
<p>What we're reading</p>
<p>Economic data releases and earnings</p>
<p>This time it's real, probably.</p>
<p>The reciprocal tariff deadline that was originally set for April and then pushed to July is now delayed until August. But the latest deferral is the final one, the president said, leaving the door open for a few more weeks of negotiations laced with a sense of finality.</p>
<p>The first and most obvious takeaway from this week's bout of tariff extensions and threatening letters is that Wall Street appears to be giving Trump the benefit of the doubt, banking on the possibility of deals with India and the European Union.</p>
<p>Stocks were little changed on Tuesday, halting the losses of the prior session, but tepid enough not to push forward. What a contrast from the shock of early April, when traders were caught by surprise by the size and scope of the reciprocal tariff announcements.</p>
<p>Read more: What Trump's tariffs mean for the economy and your wallet</p>
<p>Just a few months ago, the market failed to price in the president's campaign trail promises. This time around, uncertainty is still in the air, but it's far more measured. And so is the market response.</p>
<p>The second big takeaway to note is that the new Aug. 1 deadline, paired with the letters to 14 nations, offers both another reprieve and more aggression. There's something for everyone here.</p>
<p>Administration officials committed to ushering in a new trade regime have given themselves a little more time to show results while at the same time, the flurry of letters to two dozen US trading partners has amped up the stakes.</p>
<p>On the flip side, investors buying into the "TACO" trade, the idea that "Trump always chickens out," have been emboldened by the latest delay, believing that the president will eventually dial back his trade threats. We are, after all, back to surfing record highs in part for that very reason.</p>
<p>Read more: 5 ways to tariff-proof your finances</p>
<p>But whether you believe the administration is sticking to the spirit of its plan or implicitly conceding to the difficulties of transforming global trade, the new deadline will bring its own knock-on effects.</p>
<p>That's because, as any business trying to plan would say, a delay is a double-edged sword.</p>
<p>That no new tariffs will be slapped on trading partners, at least for a little while, surely comes as a relief to exporters from countries like Malaysia, South Africa, and Indonesia. But as so many analysts and executives have warned over the past several months, the uncertainty surrounding US trade policy is its own kind of financial hindrance. Similar to the prior extension, the August postponement doesn't resolve that uncertainty but merely prolongs it. At least, one might say, it's not another 90-day pause.</p>
<p>That has ramifications for businesses as well as central bank policymakers. Fed Chair Jerome Powell and his colleagues are weighing mixed economic signals — from a downward revision to first quarter GDP growth to a slight uptick in PCE inflation and continuing jobless claims reaching their highest level since 2021.</p>
<p>For the Fed, at least, a delay dovetails nicely with its reiterated wait-and-see approach, balancing lukewarm economic readings alongside the need to assess the true impacts of tariffs that have yet to be implemented. But for everyone else, it may mean further reluctance to change interest rate policy until the deals firm up.</p>
<p>The economy hasn't buckled despite new levies. But the full suite of tariffs hasn't landed yet. Pushing out the tariffs also means another delay in fully understanding them.</p>
<p>Hamza Shaban is a reporter for Yahoo Finance covering markets and the economy. Follow Hamza on X @hshaban.</p>
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