What Is the End Game for Tariffs?

Aug 1, 2025

Kevin Gordon, a market strategist, fills in for Liz Ann Sonders and dives into current economic trends with Kathy Jones. They discuss the implications of tariffs on the economy and trade relations, especially concerning Brazil and the UK. The conversation also tackles inflation, labor market dynamics, and the importance of robust companies during instability. Furthermore, they explore the unusual low yields in the corporate bond market, highlighting the need for careful assessment amidst hopeful investor sentiments.

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INSIGHT

Tariff Dynamics and Legal Risks

Tariff rates are generally increasing, but not uniformly across all countries or imports. Legal challenges to the Emergency Powers Act tariffs could disrupt the current tariff status quo.

INSIGHT

Uncertain Endgame for Tariffs

The tariff strategy's end goal is unclear, especially regarding its ability to bring manufacturing back to the U.S. A 15% tariff baseline may be insufficient to drive significant reshoring of supply chains.

INSIGHT

Tariffs' Tug of War on Economy

Tariffs cause one-time price increases that slow demand due to stagnant incomes and reduce global growth. The Federal Reserve is likely to weigh slower growth more heavily than inflation in upcoming policy decisions.

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This week, Kevin Gordon fills in for Liz Ann Sonders while she is on vacation. Kevin and Kathy Jones discuss the current state of the markets, focusing on tariff implications, inflation concerns, labor market dynamics, and sector performance.

They explore how these factors influence investment strategies and the overall economic outlook, emphasizing the importance of understanding underlying trends and potential volatility ahead.

On Investing is an original podcast from Charles Schwab. For more on the show, visit schwab.com/OnInvesting.

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