This episode explores the market ramifications of President Trump's newly announced comprehensive tariff plan, which significantly exceeded expectations. Against the backdrop of a sharply declining market, host Steve Eisman interviews Dan Clifton, head of policy research at Strategas, to analyze the plan's impact. More significantly, the discussion delves into the substantial tariff increases imposed on various countries, including a 79% tariff on Chinese goods, potentially reaching over 100% soon and a 46% tariff on Vietnamese goods. As the discussion pivoted to potential retaliatory measures, Clifton outlines three key strategies countries might employ: lobbying Congress, targeting American companies with non-tariff barriers, and forging new international alliances. For instance, the potential for retaliatory measures targeting specific agricultural products in key US states is highlighted. In contrast to the immediate negative market reaction, Clifton points out potential positive consequences, such as increased oil production due to anticipated higher prices and slower growth. Ultimately, the conversation concludes by considering the potential for a combination of retaliatory actions and negotiations, along with the significant role of the Federal Reserve in mitigating the economic fallout.
