On Thursday, President Trump announced he is delaying the implementation of reciprocal tariffs against countries with similar taxes on American imports.
FedWatch Advisors Founder and CIO Ben Emons and Center for Strategic and International Studies (CSIS) Economics Program director Philip Luck join Market Domination to discuss the latest on the delayed tariffs and how the market (^DJI, ^IXIC, ^GSPC) is digesting the news.
“This is obviously a tariff guidance that we’re getting. It’s like forward guidance from the Fed [Federal Reserve]…. We’re going to implement these tariffs in the next number of months and all these conditions, well, some of the conditions outlined. They’re going to be large, but, nonetheless, it’s a few months from now," he notes.
He explains that tariffs on “over $300 billion in goods” from China would impact Consumer Price Index (CPI) data and could lead to higher inflation in the coming months.
Luck, also the CSIS’s Scholl Chair in International Business, disagrees with the idea of tariffs leveling the playing field.
"I think it’s an incorrect assertion that the playing field is not level… Our current multinational tariff rates, as well as our bilateral tariff rates for free trade agreements, have been long negotiated over the last 70 or more years," he says.
Emons also addresses inflation risks, emphasizing that consumers "will see some follow through on actual inflation in the next few months.” He notes that tariffs could further drive inflation higher, as shown by recent CPI and Producer Price Index (PPI) data.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
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