A trillion-dollar shift in trade policy is coming. Here’s what it means for your investments.
KEY TAKEAWAYS
-
Tariff collections are soaring, but they’re being paid by U.S. companies—not foreign governments
-
Tariffs act as a tax hike for corporations, reducing earnings and pressuring stock valuations
-
Consumers bear part of the cost through higher prices—i.e., inflation
-
The Fed may be forced to hold or hike rates longer due to supply-push inflation
-
Tariffs are politically popular but economically inflationary and regressive
MY HOT TAKES
-
Tariffs are corporate taxes in disguise
-
Investors should focus on EPS and P/E—not headlines
-
The Fed can’t fix inflation that comes from policy, not demand
-
Consumers will pay more—whether they realize it or not
-
This is a political game with your portfolio as collateral
-
You can quote me: “The Treasury may be celebrating, but investors should be worried.”