What is President Trump's reciprocal tariff plan and how is it affecting the stock market and business planning?

President Trump's reciprocal tariff plan involves matching the tariff rates that other countries impose on U.S. goods. The strategy is designed to create fair trade conditions by encouraging other nations to lower their tariffs, which would prompt the U.S. to reciprocally reduce its tariffs as well. The stock market has responded positively to this announcement because it provides businesses with much-needed clarity about future trade policies. Companies now understand the framework and have until the April 1st implementation date to plan accordingly. This clear communication has removed significant uncertainty from the market. The plan serves as a negotiation tactic, giving Trump time to engage with trading partners before the deadline. By establishing this reciprocal framework, the administration aims to level the playing field in international trade while encouraging productive discussions with global partners.