UBS On-Air: Market Moves
Across the Pond: What comes next for global trade?
Apr 17, 2025
Paul Donovan, Chief Economist for UBS GWM, shares his expertise on the shifting tides of global trade. He delves into the implications of rising tariffs and the looming threat of a trade war, focusing on how these developments may impact Europe. Donovan discusses the recent drastic hikes in tariff rates and their ramifications for various sectors. He also offers strategic investment advice for navigating market volatility, highlighting resilient stocks in Europe that could provide stability amidst uncertainty.
23:30
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The announcement of significant tariffs by the U.S. has led to heightened uncertainty in global trade relations, particularly affecting Europe, China, and key sectors.
- Investors should prioritize sectors with stable earnings and resilience, such as defense, consumer staples, and healthcare, amidst fluctuating trade policies.
Deep dives
The Impact of Tariffs on Global Trade
The announcement of a universal 10% tariff on all U.S. imports has significantly altered the trade landscape, particularly affecting relationships between the U.S. and its global partners. The escalation of tariffs on Chinese goods, reaching as high as 145%, showcases the increasing tensions and retaliatory measures at play, with China expressing discontent and a retreat from negotiations. In contrast, the U.S. has quickly backed down from certain proposed tariffs, such as those on European and Vietnamese goods, indicating a fluid and unpredictable trade policy. This situation reflects the highest trade taxes in the U.S. in over a century, illustrating the complexity and shifting nature of international trade dynamics.
Remember Everything You Learn from Podcasts
Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
