Squawk on the Street SOTS 2nd Hour: China Tariffs Latest; Palantir Surges; A Spirits Slowdown 2/4/25
Feb 4, 2025
Roger McNamee, an early tech investor and founder of Elevation Partners, shares insights on the impact of tariffs on the stock market and the growing influence of Elon Musk in government. He discusses the implications of China's retaliatory tariffs, the challenges retailers face, and the potential for higher inflation. The conversation also highlights Palantir's notable surge thanks to AI demand and examines the delicate balance of tech valuations amidst shifting market dynamics.
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China's Measured Response
- China's countermeasures are seen as mild, suggesting a willingness to negotiate.
- The market isn't overly worried, as China could have responded more harshly.
Trump's Trade Perspective
- President Trump views trade deficits as unfair, regardless of economic realities.
- This perspective drives his trade policies, creating uncertainty for businesses.
Tariff Revenue vs. Tax Cuts
- Navarro suggests shifting reliance from income tax to tariff revenue.
- This strategy's viability is questioned, as tariff revenue cannot offset tax cuts without legal changes.