NEPC’s Head of Asset Allocation, Phillip Nelson, speaks on the potential implications of tariffs on China in a new Trump era. View the article on Bloomberg’s site here.
Large corporations crave predictability, and the primary economic policy of Donald Trump is chaos. Whether it’s the threat of steep new tariffs or retribution, chief executive officers and their carefully drawn plans will once again be at the whims of a leader who’s emboldened to reorder the economy.
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There’s good reason to believe that many of Trump’s comments are bluster and that he’s more likely to target Chinese companies than American ones importing components from abroad. “He won’t want to be held responsible for the closure of a Midwestern factory when the operator can no longer afford to get the parts it needs, says Phillip Nelson, head of asset allocation at NEPC, an investment consultant that oversees $1.7 trillion of assets. Then again, Trump won’t have the prospect of reelection to think about this time.”