NAB Morning Call Feeling Risky
Feb 25, 2025
In this discussion, Tapas Strickland, a market economist at NAB, dives into the tumultuous economic waters stirred by potential US tariffs on Canada and Mexico. He highlights concerns over possible job losses in the steel and aluminum sectors, citing Alcoa's alarming warning. The conversation touches on shifts in consumer sentiment influenced by inflation fears and explores broader economic indicators, including Australia’s CPI, inviting listeners to consider the ripple effects of global trade tensions.
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Market Uncertainty
- Markets react to tariff uncertainty, weak consumer confidence, and Trump's policies.
- This caused Treasury yields to fall and US stocks to decline.
Tariff Uncertainty
- Trump's comments on tariffs against Canada and Mexico caused market uncertainty.
- While officials later clarified, the market is starting to believe Trump's intention to implement tariffs.
Alcoa CEO’s Warning
- Alcoa's CEO warned that steel and aluminum tariffs could cost 100,000 US jobs.
- He advocates for exempting Canadian imports and highlights the inefficiency of restarting US plants.