

Markets Slip as Tariff Sentiment Cools
Jul 29, 2025
Mark Franklin, Managing Director & Senior Portfolio Manager at Manulife Investment Management, shares insights on market dynamics in Asia amid evolving trade negotiations between the U.S. and China. He discusses the impact of tariff policies on inflation and corporate earnings, alongside the stability seen in the energy sector and major tech firms benefiting from AI advancements. Franklin also touches on investment strategies within the treasury market and the implications of recent trade deals, providing a comprehensive view of the current economic landscape.
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Tariffs' Limited Impact on US Economy
- High tariffs on China backfired due to significant impact on the U.S. economy.
- China holds leverage through control of rare earth minerals, limiting tariff effectiveness.
AI Drives Strong Tech Earnings
- Big tech companies are showing very strong earnings due to AI investments.
- Corporate earnings are expected to rise driven by efficiency gains from AI despite some job losses.
Tariffs Yield Unexpected Surplus
- The US had a $27 billion trade surplus in June mainly due to tariffs.
- The EU-US 15% tariff deal is considered good for both sides, reducing tariff tensions.