These Are The Potential Benefits Of President Trump's Tariffs: Expert

15 hours ago

Andrzej Skiba, Head of BlueBay U.S. Fixed Income at RBC Global Asset Management, joined Forbes' Maggie McGrath to talk about the market reaction to Trump's retaliatory tariffs and any benefits to Trump's proposed tariffs.

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Transcript

00:00So the markets are in the red. Clarity might come by the time summer comes and RBC is not

00:07yet predicting a recession. I do want to close with a different version of the questions

00:11I've been asking. We've been talking about the negative ramifications of this tariff

00:15announcement. Again, markets are down. People are worried about inflation impact. Is there

00:20any economic benefit to what President Trump announced yesterday? Is there a method to

00:26the madness that could benefit the U.S. economy or equity markets or fixed income or anything

00:32we've been talking about today. Look, there's always a silver lining to events like that.

00:39And there's there's a couple of couple of those that we can highlight. The first one

00:45is the fact that dollar is weaker as a result. That will help U.S. exporters. So that's seen

00:55as a positive. The other thing that also over time will help U.S. economy is re-onshoring

01:03of production to the U.S. There's a very clear message from the Trump administration that

01:09if you produce in the U.S., you will not be faced with any of those tariffs. So clearly

01:13there are some trade partners, some corporate investors who will decide to move production

01:20facilities to the U.S. We've seen already quite a few of those announcements earlier

01:25in the year. And that clearly would be positive for the U.S. economy. So I would say that

01:33is a second silver lining. And the third one is the fact that as part of negotiations,

01:39as part of concessions that might be found, some of the external trade barriers that were

01:45preventing access for U.S. goods to global markets might be removed. That would be one

01:52of the easiest ways to reduce tariffs going forward and would have a lasting positive

01:58impact for the U.S. So it feels quite dark. It feels really challenging right now when

02:08you're looking at market trading levels. But we do believe that there are silver linings

02:16for the U.S. economy as the dust settles and we have clarity over what policy looks

02:24like ahead. Andrei Skiba, head of Blue Bay U.S. fixed income at RBC Global Asset Management.

02:31Thank you so much for sitting down with Forbes. We really appreciate your time and your insight

02:35today. It's been my pleasure. Thank you.

These Are The Potential Benefits Of President Trump's Tariffs: Expert

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