Cathie Wood Optimistic Trump’s Tariff War Could Open Up US Markets

Ark Investment Management founder Cathie Wood thinks that the Trump administration's refusal to negotiate the tariff war could have a positive underlying effect on the U.S. economy.

Wood said in an interview with Bloomberg that Trump’s tariffs are beginning to be understood as a way to reduce trade barriers in the global economy.

Her comments come days after the U.S. and the U.K. announced the first trade deal.

“If that is where we end up, that’s a tax cut. That’s a positive,” Wood said.

She expressed hope that more trade deals could be struck between the U.S. and other economies of the world.

Wood thinks this could become a “two-way street” for the U.S. to open up its markets to other countries.

The Ark founder believes that broader trade negotiations internationally could free up markets, reducing hurdles for businesses.

After announcing that tariffs against most countries in the world went into effect on April 2, which Trump termed the “Liberation Day,” the U.S. President subsequently announced a 90-day pause.

The Trump administration also entered preliminary trade talks with China, giving equity markets a fillip last week.

However, big bank CEOs are not as optimistic about the overall economy as the Federal Open Market Committee.

JPMorgan Chase CEO Jamie Dimon warned of “extraordinary” complacency in U.S. equity markets, which have recouped their “Liberation Day” losses.

As for Trump’s tariffs, Dimon thinks they are still “pretty extreme” even after the U.S. dialed down levies to 30% on Chinese goods for 90 days.

Citigroup CEO Jane Fraser thinks that there is “something deeper” going on in the markets.

At the time of writing, the SPDR S&P 500 ETF Trust (SPY) was up 0.03%, while Invesco QQQ Trust (QQQ) fell 0.04%.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: Nvidia CEO Jensen Huang Calls Trump’s China Chip Ban ‘Deeply Painful,’ Says It Cost $15B In Sales

Share

·

Add us on