Trump Tariffs: Why Stock-Market Investors Are Underrating Impact
Donald Trump's most unconventional policy proposal is also one he's been most consistent in promoting: universal tariffs.The former president's plan to implement taxes of up to 20% on goods American consumers and businesses could raise trillions in new revenue, and critics and supporters alike say it would remake the U.S. economy.But a core of Trump supporters on Wall Street don't believe Trump will actually implement tariffs on a large scale, and this skepticism is reflected in the relative calm in financial markets, experts say.Trump supporter Howard Lutnick, CEO of Cantor Fitzgerald told CNBC earlier this month that the tariffs would simply be a "bargaining tool" to force other countries to lower trade barriers, and would ultimately not need to be put in place.Mizuho Securities chief economist Steven Ricchiuto said the market sees them more as a "bargaining chip" as well, despite a recent rise in long-dated Treasury yields, which some of have been attributing to the fear of new tari