How might tariffs impact global markets?

Question: How do you think tariffs might affect international equities in 2025?

Martin Schulz: Well, tariffs are going to affect the international equities in 2025, primarily because of uncertainty. The uncertainty that obviously comes with the recent Trump election is that the level of tariffs are going to mean, that at the end of the day we're gonna see at least from the perspective of consumer prices, inflation potentially go up one time. But from our perspective, we also believe that some of the other reform that is coming from the Trump administration, whether it's smaller government, more growth-oriented tax policy may counteract some of these tariff effects. So in the end, it may be a wash.

Question: Are there any particular sectors or regions you think might be impacted?

Yes, so which regions and sectors are going to be affected by tariffs is a very, very good question. We've already heard some of the ramblings of the Trump administration that we may see some higher tariffs on Canada, on Mexico, and on obviously China. Those are the biggest source, but I'd say any nation in the world that has a current account surplus with the US may be under threat. And then from a sectoral perspective, I would argue that tariffs across the board are probably going to be against basically the automotive industry, particularly as it relates to protecting both Europe as well as the US from Chinese basically imports. And then other sectors they are likely gonna be across the board. So, again, we believe that tariffs are gonna be a negotiating tool and not gonna be a escalation/ de-escalation tool from the Trump administration. And so, we don't believe that on the margin tariffs are gonna hurt that much, but it is something that every sector probably across the board has to contend with.