Former Home Depot CEO issues stern wake-up call to investors
The former chief of the home improvement retailer is not mincing words about a key issue.
There are very few things investors, politicians, shoppers, and economic analysts have in common these days.
But if you asked them their opinion on tariffs, you actually might get them to nod their heads in agreement.
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Or, more realistically, they might all shake their fists at the sky and utter a few curse words under their breath.
President Donald Trump's proposed tariffs are believed to make life more expensive, since they dramatically affect many countries with which the U.S. has trading partnerships.
Here's the latest list of tariffs on some of America's biggest trading partners:
- China: 145%
- European Union: 10%
- Japan: 10%
- South Korea: 10%
- Vietnam: 10%
- Taiwan: 10%
- India: 10%
- U.K.: 10%
President Trump has said tariffs are the "most beautiful word in the dictionary," but not everybody agrees.
The S&P 500 briefly dipped into bear market territory last week, which is typically when it's down 20% or more from its most recent high. Image source: Shutterstock-Manuela Durson
Tariffs are spooking investors
Trump's proposed tariffs could stand to make many things more expensive.
Most everything — like cars, medicine, clothes, and food — could get pricier.
Trump has since changed course on key Chinese-made goods, saying electronics like smartphones, computers, and accessories for personal tech devices may be exempt.
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"This is the dream scenario for tech investors," said Dan Ives, global head of Wedbush Securities, on X. "Smartphones, chips being excluded, is a game-changer scenario when it comes to China tariffs."
Before the proposed exemption, some analysts speculated the cost of an Apple iPhone might have tripled.
Former Home Depot CEO issues stark words
But former Home Depot CEO Robert Nardelli is taking a contrarian approach to many analysts, arguing tariffs aren't necessarily a bad thing — even if they are initially uncomfortable.
He told Fox News that investors are spooking too easily, and they instead need to look at the bigger picture.
"Here we see another move by this president to really level the playing field, and we’re seeing over-reaction, in my opinion," he said of the market swooning at tariff news. "We should just stand down. We’re going to see these ups and downs, these goes-ins and goes-outs, but I, for example, personally have not sold a share."
He added that he's not blinking when it comes to stock dips, and that the short term pain may be for the benefit of the country.
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"I’m staying in this market because I believe what he’s doing over the long haul will benefit the country in a number of ways," Nardelli added. "Not only balancing the tariffs, but he’s also focused on balancing the dollars of trade, which is also important for this economy going forward."
