Stocks were rising on Thursday after a U.S. court blocked many of President Donald Trump’s sweeping tariffs, though the gains got less strong as trading progressed from Asia to New York.
Category
🗞
NewsTranscript
00:00The market reaction in the short term, as we've seen, is relief.
00:11Generally, if tariffs go down, markets are happy.
00:14And conversely, if we see tariffs going up, markets are not happy.
00:18But how permanent this turns out to be, certainly in the context of the other measures, which
00:23haven't been challenged, is really the key question.
00:25Well, I mean, there's a broad range of tariffs that have been put into place.
00:31And in particular, if you think about higher tariffs, say, on steel and aluminium, for example,
00:36those aren't affected by this ruling.
00:38So you still have tariffs that are in place.
00:41We're certainly at a level with higher tariff levels now than we had prior to the administration
00:45coming into power.
00:47And then it will be the negotiations between the administration and the courts to see whether
00:54not these ones, particularly around the basis on the unusual circumstances, whether those
01:04can be put back.
01:06Perhaps at the same time, we know how important tariffs are to Trump's world view.
01:11He's been talking about this for decades.
01:13So as you point out, you imagine the administration is not going to give up.
01:17And from that point of view, I would think the other countries that are negotiating with
01:20the U.S. might think is for sticking with the negotiations, because in the end, we imagine
01:25it is going to be something that the U.S. either can agree or disagree with, depending on
01:30how the partners react.