A federal court knocked down President Trump’s reciprocal tariffs – here’s what it means for the trade war.
Transcript:
ANGELO ZINO: Is the tariff drama over in our view. I would say no. I think this is something that we’re going to have to contend with for the next three plus years, to be honest with you. And probably not to the extent that we’re dealing with it today, but nonetheless, I mean, as far as specifically on the technology side of things and the tech ecosystem is concerned, I would say we’re still early days as far as the tariff unknowns, uncertainties are concerned. We’re going to get more clarity, I think, on the tariff side of things over the next couple of months. And I think that’s really important for investors on the tech side of things, especially if you’re an investor in a company like Apple, especially if you’re looking at companies like on the semiconductor side of things like an NVIDIA and a Marvell and what have you, because it’s going to these companies need to adjust. And whether it be on the supply chain side of things or whether it be on pricing, to be honest with you. But until we get more clarity on that, we are in limbo as far as investors are concerned. But I think investors now are really, understanding the fact that uncertainty will eventually lead to certainty and you need to buy ahead of that.
Whether or not the rally here is justified or not, I would say, it’s tough to say. I think it’s proper for the market to say, hey, listen, we’re probably in a situation where we are in a de-escalation as far as some of the tariffs are concerned and the worst case scenario. But in the same respect, I would say, expect some sort of permanent tariffs to likely be on the table, whether or not it be in the current form that we’ve seen here announced over the last couple of weeks, or whether it be in some other form that the administration looks to take advantage of.
Clearly, it remains to be seen how this all goes through the courts. And what ultimately comes out of this. But if we’re in an environment where the Trump administration loses some of its kind of bargaining power. And we see, lesser tariffs over time. The biggest beneficiary will be the information technology space, specifically a name like Apple.
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