The Wedbush analyst explains why the looming U.S.-China tariff deadline is unlikely to cause major market disruptions.
Transcript:
CAROLINE WOODS: What’s the threat of tariffs at this point. Because previously you had referred to it as an economic tariff Armageddon. And those deadlines are approaching. So how big of a risk are they now?
DAN IVES: Yeah but my view then. I mean, remember there were some scary weeks ministrations backed off significantly in terms of China. And I think you’ll see those descale further in terms of ultimate tariffs. And I think the Trump administration’s recognize and I’ve seen it, you know, being in DC a few times maybe initially what they’re looking for. They had a backtrack. And I think that’s what the market is factoring in as well. You’ll have a baseline 10% tariff. You’ll have some incremental reciprocal tariffs. But that’s not significantly moving the needle here. I also think the most important thing is the U.S.-China trade deal on the table. And that’s something especially for Nvidia. When you claw back 50, 60% of that China business that they’ve essentially handed to Huawei.
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