Wake Up to Money The tariff hokey cokey
May 30, 2025
In this discussion, Simon French, Chief Economist at Panmure Liberum, and Linda Yu, Economist at Oxford University, delve into the complex landscape of U.S. trade policy amid legal uncertainties surrounding tariffs. They analyze how court rulings could reshape international trade relations and influence market volatility. The duo also explores the effects of these changes on small businesses and global supply chains, emphasizing the need for resilience in navigating a tumultuous economic climate.
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Legal Limits on Tariff Power
- Courts ruled the president does not have unlimited power to impose tariffs without Congress approval.
- Legal rulings challenge Trump's broad tariffs, causing uncertainty about their future.
Tariffs Disrupt Business Planning
- Tariffs affect business costs and sourcing, influencing pricing and investment.
- Uncertainty over tariffs leads to difficult long-term planning for companies.
Supply Chains React Slowly to Tariffs
- Adjusting supply chains amid uncertain tariffs is complex and not easily reversible.
- Trade surpluses shift as countries become conduits, complicating tariff impact strategies.