Unlike Canada and Mexico, China Strikes Back

Tariffs on China are real while the others were fake

Highlights

• Tariffs on China are real while the others were fake

• A world of tariff uncertainty means higher risk premia and lower multiples…

• … while reducing business capex and growth

• Utilities, Consumer Staples and Health Care shine through this period of volatility

Key Takeaways

Tariff Turmoil

• Tariffs on. Tariffs off. Tariffs on. Tariffs off. Welcome to the world of Trump. Total chaos. Nobody can forecast. Nobody can plan. All in the name of Making America Great Again. Who knew all it would take to achieve that would be to inject extreme volatility into the macro and market landscape. What does this mean? Higher risk premia. Lower P/E multiples. Wider credit spreads.