Wall Street Breakfast
Bessent warns retaliation on tariffs will lead to escalation
Apr 3, 2025
Scott Bessent warns against retaliatory measures to Trump's tariffs, suggesting that such actions could escalate trade conflicts. RH faces economic headwinds, lowering their FY25 sales guidance. Meanwhile, Mitsubishi plans an ambitious $27 billion investment over three years to fuel growth. The podcast also delves into market trends and the challenges various companies are facing amidst these tariff uncertainties.
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Quick takeaways
- Scott Bessent warns that retaliatory measures against U.S. tariffs could escalate trade conflicts and market volatility.
- RH's profit forecast miss highlights the economic challenges faced by the housing market, contrasting with Mitsubishi's aggressive growth investment strategy.
Deep dives
Impact of Tariffs on Global Trade
The introduction of new U.S. tariffs has created significant tension in global trade relations, particularly with China and the EU, both of which have indicated their intent to retaliate. U.S. Treasury Secretary Scott Besant has advised against immediate retaliation, warning that it could lead to escalation of trade conflicts. The tariffs include a 10% baseline on all imports, with higher rates specifically targeting countries like China, Taiwan, South Korea, Japan, and the EU. This situation raises concerns about market volatility and the potential impact on consumer prices in various sectors, as exemplified by the 25% tariff on imported canned beers.
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