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Multimedia Weekly Digest: Tariff Talk

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By SA Multimedia :

Welcome to SA Multimedia Digest, where we combine videos and podcasts from across Seeking Alpha's contributor base into a single weekly article.

Many of our authors have covered the news of Trump's proposed tariffs so let's get right into it. We begin with our own Gil Weinreich, of SA for FAs fame, who gives an enlightening discussion on trade wars but ultimately hopes it doesn't come to that.

The Trump Administration is exploiting U.S. economic dominance to gain leverage for its steel manufacturers. Its predecessor tried essentially the same thing in its threatening to declare China a currency manipulator. What the U.S. and its main trading partners need most is cooperation and policy coordination, not a trade war.

TD Wealth has some questions about this trade war and also provides a series of defensive investment strategies :

The market fell after President Trump tweeted that

Tematica Research , for one, thinks it's a negotiating tactic ripped right out of Trump's own playbook.

During this week's Cocktail Investing episode, Tematica's mixologists Lenore Hawkins and Chris Versace take the bull by the horns discussing the topic that has gripped headlines and jacked stock market volatility - President Trump's proposed steel and aluminum tariffs. While there is much being said over these proposed tariffs, Lenore and Chris explain why they think Trump is using the negotiating tactics he laid out in his 1987 book, Art of the Deal .Drawing on what we are seeing in the heavy truck market and the pain homebuilders are poised to face given the current lumber shortage, Chris and Lenore game out what is likely to happen if those tariffs move past the proposal stage.Shortages. Price increases. Inflation concerns. Consumer spending pressures. Economic growth risks...The bottom line is Trump is playing a dangerous game of trade war chicken. Like most games, there tends to be a winner and a loser, and while it's possible that Trump comes out ahead on this, the risk he runs will impact the American consumer, the domestic economy and at least certain stocks if not the overall market.

With many analysts discussing how these trade wars may affect China, Manish Singh, CIO of Crossbridge Capital, in a podcast with WisdomTree , thinks they will have a greater effect on Europe.

A big discussion last week was the new Trump tariffs on steel and aluminum, and Singh chalked this up to Trump appealing to his base with a political gimmick rather than any reasoning motivated by economics-and he pointed out that the U.S. cannot compete as a low-cost producer with China. Singh does worry about these isolated trade actions having larger consequences with counter-measures coming. Who is vulnerable to these trade wars? Singh pointed out Europe and Germany in particular, where half of GDP is made up of exports-even more so than China-even though this is bad for everyone.

Tim Duy, in the same podcast, discussed the tariffs and how this affects the Fed and inflation.

Duy sees the Fed viewing the tariffs coming from the Trump administration last week as having a temporary impact on inflation, and he thinks the tariffs, by themselves in their current form, are fairly small and unlikely to have a major impact on inflation or the Fed, which would view them as being a temporary inflation impulse rather than permanent.

CME Group talked about how a US tariff on metals would impact the US dollar.

And finally, for an edifying experience, have a listen to David Beckworth's recent podcast with Kevin Hassett, the chair of President Trump's Council of Economic Advisers. He outlines some of the big issues of the past and present facing the U.S. economy and discusses how he thinks Trump's policies will lead to greater economic growth.

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Peter Schiff: No, It's Not Easy To Win A Trade War

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Please share your thoughts in our comments section. Have multimedia for us to include in the Digest? Please message us or email multimedia@seekingalpha.com.

See also U.S. Equities - Mixed Signals Battling It Out on seekingalpha.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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