Guide to Tariffs

Capital Group’s latest whitepaper explores the economic rationale, risks, and market consequences of tariffs, with expert insights from economists Jared Franz and Robert Lind.

Key Insights:

• Four Motivations Behind Tariffs: Decoupling, rebalancing trade deficits, negotiation leverage, and revenue generation—all with distinct investment implications.
• Inflationary Pressures: Tariffs raise import prices; persistent trade wars could fuel longer-term inflation and rate volatility.
• Trade Reciprocity Shift: U.S. policy may seek parity in tariffs, risking retaliation 

Access the full report for a deeper look into tariff strategies and how they may shape global markets in 2025.