London – President Donald Trump’s trade tariffs are major concerns among US and international business leaders, and industrial titans warn about problems.
Speaking in CNBC Converge live In Singapore, Bridgewater founder Ray warned about the “fight” between countries over duties.
“Tariffs will cause a fight between countries … I don’t have to talk about the military. But think about us, Canada, Mexico, China … The fight will fight, and this will have consequences,” he said, speaking on Wednesday with CNBC Sara Eisen.
Trump 25% tariffs Aluminum and steel imports came into force on Wednesday, and the EU, Australia and Canada among regions and countries affected. US markets were in restless through duties this week.
Dalio said that the current environment was a “extension of history patterns” – giving Germany from the 1930s as an example.
There was an increase in the tariff to increase the revenue and accumulation of domestic base in the country, as in that time the writing of the debt, Dalio said. “Be nationalist, be protectionist, be militarist. This is the way these things work,” Dalio said. “The question is really a conflict of all this,” he said.
Sales power Executive director Marc Benioff described reciprocity between countries as “good” if they are treated with each other in the same way. But he said “what and how” “very important they are.” “If you can’t put anything and how in a consistent, clear and meaningful way, then you could end up with a high level of volatility and conflict,” Benioff said, speaking in Converge.
The risk of recession
Alec Kersman, General Director and Head of Asian-Pacific in Pimco, warned of an increase the risk of recession due to tariff. There is “perhaps 35% likelihood” that this year he will enter the recession this year, Kersman told CNBC Martin Soong in Converge Live, compared to Pimco’s estimate of December 2024. Of the 15%.
Nevertheless, said Kersman, a screenplay Pimco’s basic case is that the American economy will grow 1% to 1.5%, “a rather significant reduction” than its earlier projections.
Kersman advised participants in the market to be “patient” in terms of balance of balance. “There are a lot of noise in the markets right now and you want to give it three to six months before you make that action,” he said. The tariffs will create “more pronounced winners and losers” and added: “The trend of globalization is diverted and no more universal laws on capital behavior.”
Consumer consumption
However, Kamal Bhatia, the President and Executive Director of the Main Property Management, said that trade wars caused by tariffs can in fact mean that consumers spend more at home.
Most people will underestimate this potential increase in costs due to the focus on “external effects” on the gross domestic product, Bhatia said in Converge Live. Countries could “return isolation,” he said, which led to patriotism and better growth of the gross domestic product.
The potential for increased domestic costs was also brought by President Alibaba Joe Tsai. Chinese domestic consumption “needs an incentive”, thanks to “tariffs and geopolitics,” Tsai said in Converge Live – an average effective American duty on Chinese goods 33%should be reached, according to Nomur estimates.
“Look at the Chinese consumer. They are very, very healthy. Household state balance is very, very strong. You look at over $ 20 trillion of bank deposits by households. So they stand aside and wait for them to spend,” Tsai said.
Tsai said “glass is half full” about Trump’s trade policy. “Trump’s administration will want to have more American companies operating in China,” he said. “In the end, you know, the tariffs may be a negotiating tool, but at some point things will be better,” he added.
EU reaction
Europe quickly avenged the steel and aluminum tariffs, saying that it would impose it Counter-Tariffs on € 26 billion ($ 28.33 billion) US goods from the beginning of next month. “Tariffs are taxes, they are bad for business and worse for consumers, they are impaired supply chains, they bring uncertainty to the economy,” European Commission President Ursula von der Leyen told reporters during a press conference on Wednesday.
CNBC -Amala Balakrishner, Anniek Bao, Katrina Bishop, Holly Ellyatt and Meredith himself contributed to reporting.
