Listen and subscribe to Stocks In Translation on Apple Podcasts, Spotify, or wherever you find your favorite podcast.
Tariffs have taken center stage as President Trump begins his second term as U.S. president.
In this episode of Stocks in Translation, recorded at the New York Stock Exchange, Yahoo Finance Markets and Data Editor Jared Blikre and Producer Sydnee Fried are joined by Wolfe Research chief economist Stephanie Roth to discuss tariffs and their potential economic impact.
Blikre introduces today’s word of the day, tariffs. Tariffs are defined as “a tax or duty imposed by a government on imported or exported goods… often used to protect domestic industries or to generate revenue.”
Although Roth remains optimistic about the economy's short-term outlook, she acknowledges that tariffs can be “really impactful” in the long run. “Tariffs, in my opinion, are [a] stagflationary type of shock to the economy, which means negative for growth and positive for inflation,” says Roth.
Related Videos
She further explains the ripple effect of tariffs, noting how their costs are passed down to consumers. According to Wolfe Research estimates, “It could cost households well over a thousand dollars if we get even a modified agenda,” says Roth.
With the rise in tariffs also comes an increase in market volatility. “We saw that very much in 2018, and I would expect to see that again,” Roth continues. “Especially since Trump is likely to play a bit of a negotiation game with a lot of these other countries. And in doing so, that's [going to] create a lot of volatility because... this affects company earnings.”
The discussion then shifts to inflationary pressures in the economy and key trends to watch in the year ahead.
Twice a week, Stocks In Translation cuts through the market mayhem, noisy numbers and hyperbole to give you the information you need to make the right trade for your portfolio. You can find more episodes here, or watch on your favorite streaming service.
This post was written by John Tejada.