President Donald Trump linked his tariffs to the record-breaking U.S. stock market on Friday and the latest data seems to support his opinion. 

• The SPY is climbing. See all of the details here. 

"Because of Tariffs!"

Trump promoted his protective trade policies as bolstering the U.S. economy in a series of social media posts Friday morning. 

"THE UNITED STATES IS WEALTHY, POWERFUL, AND NATIONALLY SECURE AGAIN, ALL BECAUSE OF TARIFFS!" Trump said on Truth Social. 

"THE STOCK MARKET IS STRONGER THAN EVER BEFORE BECAUSE OF TARIFFS!" he added in a follow-up post. 

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Critics of Trump's trade policies have warned that tariffs could raise costs for consumers and industries that depend on imported materials. However, the latest inflation data suggests that the tariffs are not causing a rise in inflation. 

The CPI report released on Friday morning by the Bureau of Labor Statistics came in cooler-than-expected and showed that the rate of inflation is actually easing. 

Markets rallied following the encouraging inflation data, supporting Trump's assertion that the stock market is "stronger than ever." 

Trade Tensions

President Trump abruptly terminated trade talks with Canada on Thursday, blaming what he described as a "fraudulent" Ontario advertisement that featured former President Ronald Reagan criticizing tariffs as harmful to workers and consumers. 

The move injects new uncertainty into one of America's most important trading relationships, as Canada's Prime Minister Mark Carney said his country remains ready to resume negotiations when the U.S. is ready." 

Trump is set to meet with Chinese President Xi Jinping next Thursday at the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea, marking their first face-to-face meeting since Trump's return to office. 

The discussions are expected to focus on trade tensions and export restrictions, with Trump signaling that major new tariffs on Chinese imports could follow if talks stall. 

Both leaders have expressed cautious optimism, and global markets will watch closely for signs of de-escalation. 

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