David Rosenberg on trade tensions
Famous economist David Rosenberg said in an interview with CNBC on June 26 that rising trade tension could affect US businesses (SPY). Donald Trump has announced import tariffs on Chinese products, steel and aluminum from various countries, and European cars, aimed at protecting the domestic market and maintaining fair trade practices.
In a CNBC interview, Blackstone private wealth solutions vice chairman Byron Wien said that Trump is right on his tough trade stance with China (FXI). However, he believes the United States shouldn’t enter into a trade war with Europe (VGK).
Rosenberg on corporate profits
Rosenberg stated that a trade war could affect the corporate profit of various US businesses. If China and Europe retaliate by slapping tariffs on various US products, corporates’ export business could suffer, affecting their profit margins. For more on trade, read Trump Warned Europe with 20% Tariff on Cars: Danger Ahead?