Ahead of Trump tariffs, U.S. markets rise, while Tesla deliveries fall short

Midway through Wednesday, U.S. stocks rose as investors braced for the anticipated implementation of reciprocal tariffs imposed by President Donald Trump.

The S&P 500 index increased 20 points, or 0.4%, the Dow Jones Industrial Average increased 172 points, or 0.04%, and the NASDAQ Composite increased 84 points, or 0.5%, at 11:28 AM ET.

Commencing April 2, President Trump will impose reciprocal tariffs on a variety of trading partners, with the actions taking effect immediately. Trump, who has made tariffs a focal point of his second term in office, is scheduled to unveil the administration's reciprocal tariffs at 4:00 p.m. ET. He has claimed that these actions are required to restore lost manufacturing jobs, increase government revenues, and rectify trade imbalances.

Investors have been on edge, meanwhile, due to ambiguity about the precise extent and retaliatory actions from impacted countries.

"Our economists expect the proposals to be more of a starting point, focusing on the 15-20 or so key trade partners (75% of imports), or the slightly broader group highlighted by the USTR in the Federal Register (comprising 88% of trade)," UBS analysts wrote in a note.

"In the end, they anticipate that the US will impose an average 15% tax on its top 15 trading partners, in addition to a 25% tariff on China and special categories like steel, aluminum, and automobiles. That would suggest tariffs of $600-650 billion, which is around five times more than the tariff rise in 2018-2019.