Preparing for Trump Rose Garden Announcement After Tariff Reports
The latest reporting suggests a pair of outcomes from Trump's "Liberation Day" announcement. Here's what we're watching.
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The market continues to contend with Trump tariff uncertainty with the latest reports on Wednesday morning suggesting those plans “remain in limbo” ahead of the day's Rose Garden event that is now set for around 4 p.m. ET.
Per those reports, multiple scenarios are still being discussed that include a tiered tariff system with a set of flat rates for countries that based on their tariffs on U.S. goods could face a Trump tariff of 10% or 20%. Another scenario is a more customized reciprocal plan, but other reports indicate Trump aides were studying a more targeted option and Trump was also still considering a flat 20% global tariff.
Last week discussed expected trade visits with the European Union, India and other officials, and we would not be surprised to learn that last-minute deal making was behind some of this back and forth. We’ll continue to follow details that emerge up to the Rose Garden announcement and share our thoughts once we’ve digested Trump’s statements.
However, our position remains that we will need to consider Trump’s tariff announcement on Wednesday afternoon but also the response from other countries. During Trump’s first term, we saw tariffs increase on U.S. corn, wheat and soybeans impacting U.S. farmers. While those are likely candidates, we are reading potential targets for reciprocal tariffs that could be more service oriented. We also have to consider the larger number of countries that could slap reciprocal tariffs on the U.S.
Our thought is that we will know much more in the coming days and based on the totality of that information we’ll make adjustments to the Portfolio as needed.
