Americans Remain Skeptical of Tariff Benefits: What Investors Should Know

Overview

Recent polling shows that most Americans are unconvinced that new U.S. tariffs will deliver meaningful economic benefits. Instead, there is broad concern about the potential for higher consumer prices and uncertainty about long-term gains. For investors, understanding public sentiment and its potential impact on markets is essential for making informed investment decisions.

Key Takeaways

Skepticism About Economic Gains

Most Americans believe that tariffs are more likely to cost the U.S. economy than generate revenue in the short and long term.

Only a minority see tariffs as a net positive, and this view is more common among those with specific political leanings.

Expectations of Higher Prices

Most respondents expect tariffs to lead to higher prices for consumer goods.

This is a significant consideration for investors, as rising costs can affect corporate profits and consumer spending.

Uncertainty About Job Creation

The public is divided on whether tariffs will lead to more U.S. manufacturing jobs.

Optimism about job growth is concentrated in certain political groups, while others remain doubtful.

Limited Tolerance for Economic Disruption

Many Americans are unwilling to accept prolonged economic disruption due to tariffs.

Even among those who support tariffs, few will endure more than a year of economic pain for potential future benefits.

Implications for Investors

Market Volatility: Tariff announcements have contributed to recent market swings and increased volatility. Investors should be prepared for continued uncertainty as trade policies evolve.

Corporate Earnings and Supply Chains: Tariffs can increase costs for U.S. companies and disrupt supply chains, which may impact sectors that rely on global trade, such as manufacturing, technology, and consumer goods.

Portfolio Strategy: Given the broad public skepticism and limited appetite for prolonged disruption, aggressive tariff policies may have limits. Investors should stay informed about policy changes and public opinion, as these factors can influence market trends and sector performance.

Bottom Line

Public skepticism about tariffs and concerns over higher prices highlight the importance of monitoring policy developments and market reactions. At Duncan Williams Asset Management, we are committed to helping clients navigate these uncertainties and adjust their portfolios as needed.

Disclosure:
This commentary is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. All investments involve risk, including the possible loss of principal. Please consult your financial advisor before making any investment decisions. Duncan Williams Asset Management is a registered investment adviser. Registration does not imply a certain level of skill or training.

Source

https://news.gallup.com/poll/660002/americans-skeptical-benefits-tariffs.aspx?utm_source=alert&utm_medium=email&utm_content=morelink&utm_campaign=syndication

‍