While cynics are sounding the alarm on the economic implications of President Trump’s proposed tariffs on China, one investment expert is very optimistic.
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“The tariffs are actually super bullish in a way that nobody seems to understand,” Fisher Investments Executive Chairman Ken Fisher told FOXBusiness’ David Asman on “Cavuto: Coast-to-Coast” on Thursday.
This comes on the heels of the White House on Wednesday announcing it would consider more than doubling its proposed 10% tariffs on $200 billion worth of imported Chinese goods to 25% in order to reinforce that America will not allow Beijing to take advantage of American workers.
Tariff critics correctly point out that a tariff is always a tax, Fisher said, but if imposed, the plan would essentially have a minuscule impact on gross domestic product (GDP).
“We are not going to get a 25% tax tariff rate. It’s going to be more like 16 [percent] which would take you down to 2.5% of one year’s GDP growth globally,” he said, adding that many of the products and almost all of the commodities will be sold off to other countries where there isn’t a tariff.
“It’s huge fear of a tiny little thing,” he added.
The Commerce Department announced in July that second-quarter GDP advanced by 4.1%, and first-quarter GDP was revised to 2.2% from 2%.
The average annual growth rate has been 2.8% over the past four quarters and is now on track for 3.1% growth in 2018 – a level that has been met with skepticism by some economists.