Thoughtful Money with Adam Taggart Stephanie Pomboy: What Impact Will The New Trump Tariffs Have?
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Feb 3, 2025 
Macro and market analyst Stephanie Pomboy shares her insights on the impacts of Trump's new tariffs on Canada, Mexico, and China. She delves into the complexities of retaliation and the shift from globalization to mercantilism. Pomboy discusses how these tariffs could affect domestic jobs, inflation, and market volatility. She also examines the relationship between employment data and stock performance, highlighting the disconnect between official statistics and real-world job seekers' experiences. Tune in for a dynamic conversation filled with macroeconomic wisdom!
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Tariff Impact on Inflation
- Tariffs' inflationary impact is debatable, as evidenced by 2018 when tariffs on China and steel led to lower CPI and PPI.
- Governments may subsidize exporters to offset tariff effects, lessening the burden on consumers.
Trump's Tariff Strategy
- Trump's tariff strategy resembles Teddy Roosevelt's "speak softly and carry a big stick" approach.
- He aims to create better trade deals by wielding the threat of tariffs as leverage.
Globalization Shift
- The shift from globalization to isolationism began with the 2005 housing bubble burst, as consumers shunned debt.
- Quantitative easing further fueled this shift, devaluing currencies and ending the globalization era.