Wall Street is generally pessimistic on economic outlook in light of new US tariffs – Bloomberg

According to Bloomberg, Wall Street traders were shocked by the US President's decision to impose massive tariffs with a minimum rate of 10% for all of America's trading partners. After the announcement of the tariffs, stock markets fell in after-hour trading, while safe-haven assets surged. Oil prices declined due to demand fears.

Strategists and money managers are now examining all the details of the new import duties. Given the deteriorating economic data from the United States, in the near term the bearish scenario for risk assets remains unchanged, Bloomberg experts say.

Chief market strategist at JonesTrading Institutional Services Michael O'Rourke considers the announced strategy on trade tariffs of the US to be more adverse than the previously discussed plan to impose 20% duties. According to his estimates, the new restrictions will lead to a slowdown in global trade, higher prices, and reduced corporate profits.

At the same time, Steve Chiavarone, head of multi-asset group at Federated Hermes, admits a possible positive effect for the markets in case of negotiations between countries to reduce tariffs. In such circumstances, he thinks, there might appear favorable conditions for buying the assets sagging in price.