The announcement of new rates by Donald Trump took the market by surprise, not by the measure itself, but for the magnitude and audacity of the proposal, as evaluated by William Castro Alves, Avenue’s chief strategist.
During your participation in WWAlves pointed out that although Trump was elected with a protectionist platform, the size of the exceeded expectations.
“What was surprise, in fact, was the size. And perhaps audacity, that many people didn’t believe he would do that,” said the expert.
Possible economic impacts
Alves anticipates that new rates should result in the United States and possible.
However, he points out that it is difficult to measure the exact impact, noting that tariffs imposed on not a significant “inflationary spike”.
The strategist also pointed out a potential increase in US government revenue as a consequence of tariffs. According to him, Trump argues that this could allow a tax reduction for residents in the United States.
Negotiation perspectives
Despite the challenges, Alves sees a positive possibility emerging from this scenario. “There is a possibility, and that could be a positive catalyst for the markets looking ahead, […] Sitting to negotiate, ”he said.
He argues that being the American market the largest in the world, countries like Vietnam could choose to negotiate rather than retaliation, potentially obtaining advantageous conditions in relation to other countries.
The expert concludes that while the scenario present challenges, he can also open opportunities for commercial renegotiations, highlighting the complexity of international economic relations in the current geopolitical context.
