Best But Never Final: Private Equity's Pursuit of Excellence Private Equity’s Response to Tariffs: Insights with Beacon Global Strategies’ Michael Allen
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Apr 29, 2025 In this discussion, Michael Allen, co-founder of Beacon Global Strategies and former White House adviser, shares his expertise on U.S. trade policy. He delves into the impact of tariffs on private equity and outlines strategies for businesses to navigate supply chain disruptions. Michael highlights the significance of bilateral negotiations and the challenges posed by geopolitical tensions, particularly with China. The conversation also emphasizes the need for companies to leverage domestic opportunities and adapt pricing strategies amidst an evolving global trade landscape.
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Trump's Shocking Tariff Impact
- President Trump's tariffs shocked the global trading system, targeting China and many allied countries deeply and aggressively.
- Despite backtracking on some tariffs, he maintains China tariffs and is negotiating bilateral deals with 90 countries to address trade barriers.
Bilateral Focus Isolates China
- The US is pursuing many bilateral trade negotiations separately instead of a large multilateral agreement.
- This approach isolates China and leverages strategic partnerships but signals globalization is in decline.
Diversify Supply Chains Strategically
- Companies should diversify supply chains wherever possible and clarify what products truly need strategic decoupling from China.
- Focus on reshoring critical sectors like semiconductors but avoid broad decoupling of all consumer goods.