Recently the new tariffs put in place have put the world in a state of shock. Investors, diplomats, and investors are all talking about the potential impact tariffs will have. Many believe that these tariffs will have a significant negative impact on both the US and global economy. With concerns increasing day by day, Wall Street has taken a stance against tariffs.
Wall Street Stands against Tariffs.
Since Liberation Day, a day where Trump announced new tariffs, the stock market has taken a massive hit. This impact has lead Wall Street to take a firm stance against these tariffs. Bill Ackman is a hedge-fund manager of Perishing Square, a billion dollar fund. Ackman said that negotiations with other countries are necessary. The alternative would be “a self-induced, economic nuclear winter”, Ackman said. “We are in the process of destroying confidence in our country as a trading partner, as a place to do business, and as a market to invest capital.” After this statement, some believed that the White House was considering pausing tariffs. As a result, the stock market jumped. However, after the White House said it wasn’t considering the pause, stocks decreased again.
While Ackman and others speak out against tariffs, Trump and his administration stand firm on their idea. Trump himself said “What’s going to happen to the markets, I can’t tell you… I don’t want anything to go down. But sometimes you have to take medicine to fix something.” Peter Navarro, trade adviser to Trump also dismissed concerns about a potential recession. Navarro stated that with time the stock market would recover and that all would be well. However, some members of the Trump administration, such as Elon Musk, aren’t a fan of these plans. Musk has been quite critical of the tariffs and is calling for a free-trade agreement between the US and Europe.
Black Rock CEO Larry Fink is also critical. Fink said “the president has been focusing on areas that in my mind in the short run are very inflationary and destabilizing the economy.” Goldman Sach’s Tony Pasquariello said “Liberation Day was a knock-down, drag-out affair.” Additionally, Ed Yardeni, founder of Yardeni Research said that “we believe that Wall Street and Main Street prosper and suffer together”, but that “The Trump administration disagrees.”
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