The Biden administration's implementation of new tariffs on China, targeting nearly $18 billion worth of imported goods, has sparked discussions about the potential economic implications. Joining Catalysts to provide insights into the outlook following this tariff measure is Pangea Policy Founder Terry Haines.

Haines notes that "the Chinese have never gone without responding to United States tariff action," indicating that a response to these new measures should be expected. However, he suggests that since this dynamic already exists, a potential response is "not really a big deal" for markets, and it could even boost some stocks. Haines advises investors not to "fall for the tariff noise" as policymakers aim to "shore up the defense and industrial base."

When asked about any lasting fallout from these tariffs on Biden's bid for re-election, Haines suggests that "an awful lot of the economic narrative is baked in." With inflation remaining stubbornly high and prices elevated, he argues that "unless there was a big dive in prices, say 3 or 4 months ahead of the election, this narrative is not gonna change."

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This post was written by Angel Smith