The Bid

208: The Economic Impact of Tariffs: How the New U.S. Tariff Policy is Shaping Global Markets

Feb 7, 2025

Glenn Purves, Global Head of Macro at BlackRock, and Catherine Kress, Head of Geopolitical Research at BlackRock, dive deep into the recent U.S. tariffs impacting global markets. They discuss how these tariffs stir market volatility and raise inflation concerns. The duo unpacks the vital effects on U.S. companies and supply chains, while analyzing the broader geopolitical landscape, particularly U.S.-China relations. They highlight new investment opportunities amidst these changing dynamics and share insights on navigating this complex economic terrain.

21:36

Episode guests

Catherine Kress

Glenn Purves

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Episode notes

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Quick takeaways

The recent U.S. tariff announcements have led to significant market volatility, impacting inflation expectations and straining U.S. companies reliant on global supply chains.

Geopolitically, the tariffs are being used as a negotiation tool by the Trump administration, affecting U.S.-China relations and prompting Canada and Mexico to seek diplomatic resolutions.

Deep dives

Impact of Recent U.S. Tariffs on the Market

Recent announcements of U.S. tariffs, including 25% on goods from Mexico and Canada and 10% on Chinese imports, have led to significant market reactions, including a decline in equity markets and an increase in short-term yields. These tariffs are perceived as a potential strain on U.S. growth and inflation expectations, prompting concerns that the Federal Reserve may need to respond. The complexities of global supply chains further complicate this situation, as many U.S. companies rely on imports for production, making them vulnerable to these tariffs. For instance, the automotive sector, with its integrated supply chains crossing borders, has particularly felt the repercussions of such policy changes.

Intro

2min

Tariff Tensions and Market Impacts

13min

Global Trade Dynamics and U.S.-China Relations

2min

Navigating Long-Term Economic Trends Amid Tariffs

2min

Navigating Investment Opportunities Amid Trade Policy Changes

2min

Trade policies have always been a critical aspect of global economies and recent developments in U.S. tariff policy have sparked global market volatility and discussions around the impact on inflation. The latest tariff announcements have sent ripples through the markets, affecting various sectors, and raising questions about their long-term impact. But what exactly is the impact of the new tariff policies and how will they influence US businesses, global supply chains and the broader financial market?

In this episode of The Bid, an investing podcast from BlackRock, we dive into the latest developments in trade policies and their impact on global economies. Joining Oscar to unpack these developments is Glenn Purves Global head of Macro in the BlackRock Investment Institute and Catherine Kress, Head of Geopolitical Research and Strategy at BlackRock.

This episode was recorded at 2pm, February 5th, 2025.

This content is for informational purposes only and is not an offer or a solicitation. Reliance upon information in this material is at the sole discretion of the listener. Reference to the names of each company mentioned in this communication is merely for explaining the investment strategy and should not be construed as investment advice or investment recommendation of those companies. In the UK and Non-European Economic Area countries, this is authorised and regulated by the Financial Conduct Authority. In the European Economic Area, this is authorised and regulated by the Netherlands Authority for the Financial Markets. For full disclosures go to Blackrock.com/corporate/compliance/bid-disclosures

import, export, international, economics, government, business, tax, customs, regulation, agreement, duty, protectionism, negotiation, tariff, rates, free trade, tariff rates, tariff policy analysis

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The Bid

208: The Economic Impact of Tariffs: How the New U.S. Tariff Policy is Shaping Global Markets

Episode guests

Podcast summary created with Snipd AI

Quick takeaways

Deep dives

Impact of Recent U.S. Tariffs on the Market

Geopolitical Implications and Future Negotiations

Long-term Economic and Investment Outlook

Remember Everything You Learn from Podcasts