Bloomberg Talks Former US Commerce Secretary Wilbur Ross Talks Tariffs and the Market
Mar 27, 2025
Wilbur Ross, former US Commerce Secretary and veteran investor, shares insights on tariffs and their ripple effects on global trade and markets. He discusses the recently introduced auto tariffs, aiming to bolster U.S. manufacturing but warns of potential inflation. The conversation also navigates reciprocal tariffs and their complexities, alongside the impact of non-tariff barriers that challenge American businesses. Ross highlights strategies for reducing the federal workforce to tackle the deficit while balancing political pressures.
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Tariff Goals
- Trump's tariff goals include relocating manufacturing, increasing revenue, and offsetting inflation.
- He believes foreign manufacturers and governments will absorb some tariff costs.
Tariff Implementation
- Wilbur Ross suggests using a limited number of important tariffs with the same rate for every country.
- Varying tariffs by country would be hard and could lead to transshipment loopholes.
Non-Tariff Barriers and VAT
- Non-tariff trade barriers, like the EU's ban on GMO foods, are worse than tariffs.
- The VAT system makes American cars more expensive in VAT countries and vice versa for foreign cars.