Cathie Wood's Contrarian Take: Could Tariff Tensions Lead to More Open Markets in the Long Run?
It's been about six weeks since President Donald Trump announced his reciprocal tariff plan. And while most of the proposed tariffs have been put on pause to allow trade negotiations to proceed, baseline tariffs remain in place, and many experts believe they will be a generally negative catalyst for the American consumer, and the economy in general.Two key viewpoints shared by many economists are that tariffs will end up causing inflation to rise just as the Federal Reserve got the last wave of inflation largely under control, and that price increases will be passed on to the consumer.On the latter point, this seems to be the case, at least to some extent. For example, Walmart (NYSE: WMT) recently said that it will be forced to start increasing prices on imported goods because of tariffs. However, we have yet to see if tariffs will cause broad and significant inflation, and not all experts agree that they are going to be a negative for the economy.Continue reading
It's been about six weeks since President Donald Trump announced his reciprocal tariff plan. And while most of the proposed tariffs have been put on pause to allow trade negotiations to proceed, baseline tariffs remain in place, and many experts believe they will be a generally negative catalyst for the American consumer, and the economy in general.
Two key viewpoints shared by many economists are that tariffs will end up causing inflation to rise just as the Federal Reserve got the last wave of inflation largely under control, and that price increases will be passed on to the consumer.
On the latter point, this seems to be the case, at least to some extent. For example, Walmart (NYSE: WMT) recently said that it will be forced to start increasing prices on imported goods because of tariffs. However, we have yet to see if tariffs will cause broad and significant inflation, and not all experts agree that they are going to be a negative for the economy.
