President Donald Trump has made tariffs the centerpiece of his economic policy agenda, and his tariff policies have gotten mixed reviews from investors and economists.

President Donald Trump seems willing to spend “financial markets capital” whenever stocks are up, say strategists at GlobalData, TS Lombard.

Japan and Europe are two of the U.S.’s largest trading partners and now that the markets have some certainty around trade, it’s back to “risk-on” for investors, according to Jim Reid’s team at Deutsche Bank.

Markets had dismissed tariff risks under the assumption that Trump would follow an earlier pattern and back off, in what became known as the so-called TACO trade. That allowed stocks to reach new record-high territory recently, marking a stunning rebound from the collapse triggered by his “Liberation Day” reciprocal tariffs in April.

The U.S. investment bank goes through the reasons why the stock market keeps rising as new and higher tariff levels get announced.

That rebound has stunned analysts, given the pile-up of macro risks, particularly President Donald Trump's ongoing threats to impose steep tariffs on key trading partners. Yet investors keep piling in — even if many are doing so with one eye on the exit.

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One thing we’ve learned about US President Donald Trump in the first six months of his second term is that there’s a big difference between what he threatens to do and what ends up happening. He threatens, say, a sweeping tariff, and what eventually becomes real is somewhat less severe than that tariff.