The speech came hours after the president imposed 25% duties on Canadian and Mexican imports on Tuesday morning over issues, he says, of illegal drugs and migration. He also implemented a second round of 10% duties on Chinese imports to increase the blanket tariffs on that nation to 20%

The moves drew fast retaliation from all three countries and led to days of market stability.

In a Fox Business Network appearance on Tuesday afternoon, Commerce Secretary Howard Lutnick teased the possibility of tariff reductions with Canada and Mexico. He said of Trump: "I think he's going to work something out with them [and] somewhere in the middle will likely be the outcome, the president moving with the Canadians and Mexicans, but not all the way."

But in his speech, Trump again touted those particular duties and didn't offer much signal that a retreat was in the offing even acknowledging they could bite farmers, some of his most ardent supporters, saying "there may be a little adjustment period."

To DOGE and Elon Musk: 'Thank you very much'

When it came to Elon Musk and his Department of Government Efficiency (DOGE), Trump continued his embrace of the world's richest man and called him out by name early in the speech.

Musk was in attendance, seated in the first lady's box.

To further combat inflation, we will not only be reducing the cost of energy, but we'll be ending the flagrant waste of taxpayer dollars. And to that end I have created the brand new Department of Government Efficiency. DOGE, perhaps you've heard of it. Which is headed by Elon Musk who is in the gallery tonight. He's working very hard. He didn't need this. He didn't need this. Thank you very much. We appreciate it.

Perhaps the largest reaction during that section of the speech came when Trump charged extensive fraud in the Social Security Administration, the latest agency in Musk sights, and repeated very questionable claims that significant numbers of checks are being directed to people over 160 years old.

Overall, Trump claimed Musk's moves would help lower inflation and eventually balance the federal budget even as the evidence is that overall federal spending has continued unabated

A focused on 'rare earths here in the USA'

On the subject of Ukraine and a rare earth mineral deal in limbo, Trump promised to make peace in Ukraine but also announced that he would turn his attention to minerals not in Ukraine, but in the US.

Later this week, I will also take historic action to dramatically expand production of critical minerals and rare earths here in the USA.

The comments came following an Oval Office yelling match between Trump and Ukrainian President Volodymyr Zelensky last Friday that was supposed to mark a key minerals deal. Instead, Trump said at one point "it's going to be very hard to do business like this."

Trump then suspended the delivery of US military aid to the country after the confrontation affecting more than $1 billion in arms as Zelensky reached out this week to try and get talks back on track.

Later in Tuesday's speech, Trump said he would be the one to achieve peace in Ukraine and accused Democrats of wanting the war to continue.

He also said that Zelensky had send him a thankful note indicting he wanted to sign the mineral rights deal at Trump's convenience.

Trump didn't indicate whether he would be taking Zelensky up on up on his offer, saying he had just received the letter.

On taxes: 'We're seeking permanent income tax cuts'

On taxes, Trump offered his support for more expensive permanent tax cuts and reiterated his additional tax ideas that could add additional trillions to the national debt and rely on an accounting maneuver called a gimmick by budget hawks to pay for it all.

"We're seeking permanent income tax cuts all across the board and to get urgently needed relief to Americans hit especially hard by inflation." he said. "I'm calling for no tax on tips, no tax on overtime, and no tax on Social Security benefits for our seniors."

A few hours before the speech, the question was how much market friendly rhetoric Trump would offer and how much would be less well received.

PIMCO head of US public policy Libby Cantrill said in an interview with Yahoo Finance on Tuesday afternoon: "We've had a lot of vegetables recently, I think the market wants some dessert."

Trump’s tax commentary was perhaps the "dessert" portion of the speech for markets.

Ben Werschkul is Washington correspondent for Yahoo Finance.

Every Friday, Yahoo Finance's Rick Newman and Ben Werschkul bring you a unique look at how U.S. policy and government affects your bottom line on Capitol Gains. Watch or listen to Capitol Gains on Apple Podcasts, Spotify, or wherever you find your favorite podcasts.

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