In the latest episode of Trader Talk, host Kenny Polcari delivered a pointed monologue on the market’s exaggerated response to tariffs. He noted that whenever tariffs make headlines, the market reacts as though it’s reliving the 2008 crisis—with stocks plunging and volatility spiking. According to Polcari, tariffs themselves are not the enemy. These taxes, imposed on imported goods to regulate trade and protect domestic industries, are designed to bolster government revenue and support local production.
Polcari explained that tariffs contribute to domestic job growth and provide additional funds for infrastructure, healthcare, and national defense. They also help strengthen national security by protecting critical sectors and reducing over-reliance on foreign competitors, an issue highlighted by ongoing U.S.–China trade tensions. Moreover, tariffs serve as a useful tool in trade negotiations, offering leverage to secure more balanced trade agreements.
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He criticized the knee-jerk reaction from investors who, driven by emotion rather than fundamentals, trigger market sell-offs at the first sign of tariff news. “When the dust settles, executives adjust, trade deals get renegotiated, and those who remain calm and strategically position themselves win,” Polcari remarked. His message is clear: tariffs expose which companies possess true pricing power and resilience, creating opportunities for those with robust balance sheets rather than spelling doom for the market.
Watch more episodes of Trader Talk here. Trader Talk with Kenny Polcari on Yahoo Finance provides expert insights to help you navigate market volatility.
This post was written by Langston Sessoms.