COINOTAG News reports that President Trump is slated to unveil his tariff policy during a White House Rose Garden event this Wednesday. Market analysts are weighing in on potential implications for both the financial landscape and investor sentiment. Ethan Harris, the former head of economic research at Bank of America, emphasizes that this announcement, dubbed “Liberation Day,” will likely fail to offer the much-needed clarity that stakeholders seek amidst an ongoing trade conflict.
Garrett Melson, Portfolio Strategist at Natixis, shares a similar sentiment, noting the prevailing market sentiment is muted and investor positioning remains light. The looming uncertainty over tariffs combined with suboptimal economic performance is inducing a cautious wait-and-see approach among investors. Meanwhile, Chris Weston from Pepperstone highlights the complex relationship between anticipated tariff measures and the potential for stagflation, which could pose significant risks for the U.S. economy.
Moreover, Vasu Menon from OCBC notes that Trump’s rhetoric about “Liberation Day” may not alleviate investor anxieties, especially if retaliatory measures emerge from other nations. As Jim Reid from Deutsche Bank warns, the imposition of high tariffs might provoke counteractions that could further fan the flames of inflationary pressure. In this precarious climate, manufacturers are keenly awaiting clear tariff guidelines to gauge the impacts on demand and operational costs.
Lastly, Carol Kong from the Commonwealth Bank of Australia points out that market dynamics will remain volatile ahead of the tariff announcement. As the financial world braces for possible ramifications, exchange rates are likely to be significantly affected by the latest updates on tariff policies.