Trump's Tariffs on the Brink, Analysts' Views Summarized

BlockBeats News, April 2: President Trump is set to announce his tariff policy at an event in the White House Rose Garden on Wednesday. Various industry analysts have shared their views on the upcoming tariff details and market fluctuations.

Ethan Harris, former head of economic research at Bank of America: Trump's so-called "Liberation Day" is likely just one of the many steps in the ongoing trade war. It's unlikely to provide the clarity that investors, businesses, and households are hoping for. Even if the trade war ends, the U.S. economy is still expected to weaken due to other policy aspects such as government spending cuts and employment.

Garrett Melson, Portfolio Strategist at Natixis: The reality is that market sentiment has been diluted, and positions are still quite light. I don't believe we will get the clarity that investors and business leaders are looking for. We have spent a lot of time discussing tariff issues, but more importantly, we are facing an economy that is not firing on all cylinders. Investors are adopting a wait-and-see approach.

Chris Weston, Research Director at Pepperstone: We are about to enter Trump's shining moment, with many already deleveraged as much as possible, staying as neutral as they can on equities, the dollar, and U.S. Treasuries. While in theory, a 20% comprehensive tariff rate will be seen as a net positive for the dollar, the market is most concerned about whether tariffs will accelerate the risk of stagflation in the U.S. economy.

Vasu Menon, Investment Strategy Executive Director at Oversea-Chinese Banking Corporation (OCBC): Trump called April 2 "Liberation Day," but investors are unlikely to truly escape the uncertainty of tariffs. If other countries take retaliatory action, Trump may escalate, further fueling investor anxiety.

Jim Reid, Analyst at Deutsche Bank: Trump will announce the imposition of high tariffs, and other countries may respond with their retaliatory measures, exacerbating concerns about inflation. One major concern for investors is that U.S. tariffs will face retaliatory actions, and as the U.S. seeks to respond, this could lead to further escalation.

Economist at Wealth Bank: Pre-tariff "vaccine" measures and risk reduction in imports have raised the manufacturing price index, while ongoing uncertainty is suppressing potential demand, leaving manufacturers eager to know the specific details of the tariff plan.

Carol Kong, Foreign Exchange Strategist at Commonwealth Bank of Australia: The market will be on edge before Trump announces the tariffs. Market sentiment will be influenced by further tariff news, which in turn will drive exchange rate movements ahead of significant announcements. (FXStreet)