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President Donald Trump recently proposed an aggressive tariff strategy: 25% tariffs on Canada and Mexico's imports, 10% on Canadian energy, and 10% on Chinese imports, though the president announced on Monday a one-month delay for tariffs on Mexico.
Sarah Kunst, managing director at Cleo Capital, joins Catalysts with Seana Smith and Madison Mills to discuss the impact of President Trump's tariff policies on companies that depend on consumer spending.
"When you look at the companies that are going to be impacted, I think particularly in the face of tariffs, it's companies that import a lot from those partners," Kunst says.
In particular, she notes, "[Tariffs are] probably going to hurt [Amazon] (AMZN) a lot more than it hurts Meta (META), although even that might have some impact if it impacts ad spend."
Kunst explains, "A lot of [consumer-facing names] have already been looking, like most companies, at buying more inventory in advance from countries that could be impacted, which sounds like the EU might be next."
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"Smart, good, diligent CEOs who've been looking at this and knew that it was coming are going to be rewarded much more than those who sort of just were riding on vibes and hoping it would all work out," Kunst adds.
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
This post was written by Naomi Buchanan.