Trump's Liberation Day: What's Working In A Tariff Tantrum?

2025-04-02 18:24:18 ET

Summary

• Focus on oil & gas, waste management, and REITs as they have been performing well and are tariff-agnostic.
• Avoiding investments in the auto sector and hard asset Mag 7 stocks due to their tariff focus.
• The tariff policy details are crucial for understanding market dynamics and making informed investment decisions.

The details of the tariff policy

After watching President Trump's "Liberation Day" speech on what tariff policy is going to look like going forward, some things stood out:

• Reciprocal tariffs are the main point [the US will match foreign tariffs tit-for-tat] with some caveats.
• 25% tariff on all auto imports.
• The speech didn't seem like the tariffs were going to be removed any time soon unless a foreign country also removed their tariffs.
• The final chart shown by President Trump seemed to indicate the reciprocal tariff basis may, in fact, be 50% of the average tariffs of other countries, which includes claims of currency manipulation that ratchet up the basis of other countries' tariffs against the US.

Read the full article on Seeking Alpha

For further details see: