Monetary Matters with Jack Farley Liberation Day Has Come | Jack & Max on Seismic Market Revolt Against Trump Admin’s Tariff Policy (Recorded April 3 2025)
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Apr 3, 2025 Jack and Max dive into the shocking effects of recent tariffs imposed by the Trump administration, which are based on trade deficits rather than foreign measures. They analyze the potential chaos in global trade and the cascading impact on corporate sectors reliant on imports. Discussion shifts to the Federal Reserve's uncertain stance amid tariff-related risks. They also explore differing views on whether these policies could send the economy into recession, along with the political fallout and rising nationalism they could incite.
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Tariff Calculation
- Trump's tariffs are based on trade deficits, not existing tariffs.
- This approach deviates from typical trade policy and economic thought.
Lesotho Tariff Example
- Lesotho, with a small export volume to the US, faces a 49% tariff.
- This illustrates the arbitrary nature of the tariff calculations.
Market Impacts
- Companies like Five Below, Wayfair, Nike, and Lululemon are expected to be negatively impacted.
- Alibaba, with less US exposure, might be less affected.