Squawk on the Street SOTS 2nd Hour: Stocks Swing On Tariff Headlines: What Investors Should Know 4/7/25
Apr 7, 2025
In this engaging discussion, Wharton Professor Jeremy Siegel, a veteran in finance, claims tariffs are the worst policy mistake in nearly a century. Joined by technology analyst Dan Ives from Wedbush, they delve into the bleak outlook for major tech stocks like Apple and Tesla due to tariff impacts, leading to significant downward revisions. CNBC's Steve Liesman provides insights into the Federal Reserve's policy challenges amid job loss concerns and inflation. Together, they dissect the turmoil in global markets driven by uncertainty and trade tensions.
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Trade War: An Unforced Error
- The current trade war is an unforced error, hurting the US economy and its credibility.
- Even those who agreed with the initial premise criticize the execution and high tariffs.
Questionable Policy Goals
- The lack of intellectual rigor in applying tariffs raises questions about the true policy goals.
- Is it revenue generation, trade deficit elimination, or bringing back manufacturing?
Market Surprise and Credibility Concerns
- The market's surprise at the extent and method of tariffs imposed suggests a miscalculation.
- Sovereign wealth funds selling US assets raises long-term concerns about credibility.