Bloomberg Surveillance Concerns over US Growth as US Tariffs Appear More Targeted
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Mar 24, 2025 
Joe Lavorgna, Chief Economist at SMBC Nikko Securities and former Trump economic advisor, passionately argues that new targeted tariffs could herald a 'Golden Age' for the U.S. economy without causing inflation. He outlines the implications of Trump’s upcoming announcements on trade relations. Liz Ann Sonders, Chief Investment Strategist at Charles Schwab, shares her insights on the recession risks and market anxieties tied to these tariffs, while dissecting the contrasting fortunes of tech stocks versus broader market indices. A lively discussion on navigating economic uncertainty unfolds.
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Impact of Policy Uncertainty
- The current administration's chaotic approach to trade, including tariffs and tax policy, creates uncertainty.
- This uncertainty negatively impacts businesses, particularly regarding capital expenditures and growth.
Mixed Economic Signals
- While some companies express concern about economic uncertainty, small businesses, crucial for job growth, are performing well.
- Real income is up due to job growth but expenditures are down, creating a confusing economic picture.
Impact of Tax Cuts
- Under the previous Trump administration, the Tax Cuts and Jobs Act benefited middle- to lower-income households significantly.
- Real median income increased substantially during this period compared to the preceding 16 years.