NAB Morning Call Not so Tariffic
8 snips
Feb 2, 2025 Tapas Strickland, NAB’s expert market economist and strategist, sheds light on the economic landscape shaped by recent US tariffs on imports from Canada, Mexico, and China. He discusses how these tariffs could redefine expectations for global growth and inflation. Strickland delves into the repercussions on GDP and market reactions, while also considering labor market indicators like rising employment costs. The discussion highlights the complexities of international trade relationships and potential retaliatory actions from other nations.
AI Snips
Chapters
Transcript
Episode notes
Trade War Begins
- The US imposed tariffs on imports, causing global market reactions and raising concerns about growth and inflation.
- The Fed's response and the direction of trade remain uncertain.
Tariffs as Tools
- The US administration is using tariffs as a negotiating tool and a structural feature to reduce trade deficits.
- Market reactions are expected to be significant as the news sinks in.
Economic Impact of Tariffs
- Tariffs increase business costs, raise prices, and make North America less competitive, leading to retaliation from allies.
- The economic impact on GDP and inflation is uncertain, depending on the duration and extent of the tariffs.