Bloomberg Daybreak: Asia Edition Trump Vows No Tariff Extension, Hardens Threats on Copper, Drugs
Jul 9, 2025
Frances Stacey, an Economic Strategist at Scarlet Oak Financial, and Stephen Olson, a Senior Visiting Fellow at the Yusof Ishak Institute and former US Trade Negotiator, discuss Trump's unwavering tariff stance. They delve into the implications of potential new tariffs on copper and pharmaceuticals, exploring how these could drive inflation and market volatility. The duo also sheds light on the complexities of current trade negotiations, particularly regarding India and China, and the broader geopolitical ramifications of Trump's aggressive trade policies.
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Strategic Deadline Shifts
- The Trump administration strategically shifts trade negotiation deadlines to manage market volatility.
- This tactic keeps markets from immediately pricing in outcomes, stabilizing equity and bond markets temporarily.
Copper Tariffs Could Boost Inflation
- A potential 50% tariff on imported copper could push commodity prices and inflation higher.
- This contributes to concerns of sustained inflation reacceleration impacting the economy and Fed policy.
Stagflation Risk Emerging
- The U.S. faces stagflation risks with slower growth and persistent inflation pressures.
- Fiscal challenges and the Fed's cautious stance intensify stresses on policy decisions.