According to The Kobeissi Letter, the initial announcement from a WSJ report about a 10% baseline tariff by the US led markets to believe all tariffs would be 10%. However, President Trump later clarified that many tariffs would exceed 10%, affecting market sentiment significantly.

According to The Kobeissi Letter, the market initially reacted to a Wall Street Journal report indicating a 10% baseline tariff would be imposed by the U.S. Traders misinterpreted this as all reciprocal tariffs being set at 10%, leading to temporary market stability. However, President Trump's subsequent announcement of additional tariffs above 10% introduced significant volatility, affecting trading decisions.

According to The Kobeissi Letter, markets have been adjusting to reduced tariff uncertainty over the past week, particularly following a Wall Street Journal report on March 24th suggesting potential tariff 'leeway.' However, recent developments have shifted market sentiment, providing a 'reality check' for traders. This shift indicates that the market's previous pricing strategies might need reassessment due to the evolving geopolitical landscape.