Macro Voices MacroVoices #478 Luke Gromen: Trump Tariff Policy Will Drive Gold Even Higher
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May 1, 2025 
In this discussion, Luke Gromen, the Founder of Forest for the Trees, delves into the striking implications of President Trump's tariff policies. He argues these tariffs could drastically reshape tax structures, potentially exempting the bottom 90% from income tax. Gromen also highlights how these changes affect gold prices, market dynamics, and U.S.-China trade relationships. He emphasizes the need for strategic investment in U.S. infrastructure to counter energy shortages while analyzing ongoing shifts in global capital flows.
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Trump's Tariff Policy Reshapes Flows
- Trump's tariff policy aims to shift dollar flows from financial assets to real assets like factories and infrastructure.
- This strategy weakens the dollar and boosts gold as a neutral reserve asset, reshaping global capital flows.
China's Strategic Gold Accumulation
- Rising Shanghai gold premiums with rising gold prices signal China's strong physical gold buying for reserves.
- This contradicts narratives that China is running out of dollars; they are strategically accumulating gold instead.
Gold as Yuan Strength Proxy
- China devalues yuan against gold to strengthen yuan competitively without straight dollar weakening.
- The US tacitly accepts this as it leads to a weaker dollar and supports gold price appreciation.