Unhedged Tariffs up. Markets down
59 snips
Apr 3, 2025 After a surprising tariff announcement, markets took a nosedive, especially in tech and banking. The hosts dissect how these tariffs will hit American consumers hard, acting like hidden taxes. They also humorously discuss unexpected topics, including a playful mock tariff on penguins. Insights into treasury inflation-protected securities shine as a beacon for investors during this chaotic economic period. The complexity of international trade relationships amid tariffs adds another layer of intrigue, revealing the delicate balancing act policymakers must navigate.
AI Snips
Chapters
Transcript
Episode notes
High Tariffs
- President Trump's tariffs are much larger than expected, significantly impacting American companies.
- The tariffs, ranging from 20-30%, make the US one of the highest tariff nations globally.
Non-Reciprocal Tariffs
- Trump's tariffs aren't truly reciprocal, despite his claims.
- The tariff calculation, based on trade deficits, penalizes countries with high deficits regardless of their tariff levels.
Impact on Credibility
- The unusual tariff calculation makes future negotiations difficult.
- It lowers the administration's policy credibility, impacting market risk appetites.