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 major stock market indexes were flat to slightly lower for the week, but right at highs despite big new Trump tariffs.

Global markets shrugged off news of Trump's latest tariffs, with both Asia-Pacific and Europe stocks staging a muted response Tuesday.