Squawk Pod Trump Tariff Sell-Off Deepens 4/4/25
Apr 4, 2025
Jeremy Siegel, Professor Emeritus at Wharton and Chief Economist at Wisdom Tree, critiques Trump's tariffs as a monumental policy blunder. He emphasizes the resulting economic turbulence and warns of a recession. Senators Maria Cantwell and Chuck Grassley discuss a bipartisan effort to limit presidential trade power, stressing the need for congressional oversight. CEO Nick Pinchuk shares insights on the complexities facing manufacturers under these tariffs, highlighting the urgent need for a cultural shift towards valuing American production.
AI Snips
Chapters
Transcript
Episode notes
Biggest Policy Mistake
- Trump's tariff policy is the biggest policy mistake in 95 years, similar to the Smoot-Hawley Tariff Act.
- The Fed will likely lower interest rates due to this global shock, despite higher inflation.
Market Outlook
- Long-term investors should stay in the market, but traders should be cautious due to the tariffs' impact.
- The American economy will remain strong, but there will be short-term market instability.
Global Implications and Potential Reversal
- China's retaliation might embolden other nations to impose similar tariffs, worsening the situation.
- Trump might reverse the tariffs if public opinion turns negative, declaring a false victory.