No Income Tax, Yes To High Import Tariffs? Trump Floats Idea To CEOs, GOP Lawmakers
Portfolio Pulse from Hayden Buckfire
Former President Donald Trump proposed eliminating income taxes in favor of an 'all tariff policy' to CEOs and GOP lawmakers. This policy could significantly impact sectors reliant on imports, such as consumer discretionary and technology, while potentially benefiting domestic manufacturing and international manufacturers outside of China.
June 13, 2024 | 6:07 pm
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NEGATIVE IMPACT
The Vanguard Consumer Discretionary ETF (VCR) could see increased import costs due to Trump's proposed tariff policy, negatively affecting the fund's performance.
Similar to XLY, VCR includes companies that rely on imported goods. Higher tariffs would increase costs and potentially reduce profitability.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Vanguard Information Technology ETF (VGT) could face higher costs for imported components due to Trump's proposed tariff policy, negatively affecting the fund.
Similar to XLK, VGT includes technology companies that rely on imported components. Higher tariffs would increase costs and potentially reduce profitability.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Technology Select Sector SPDR Fund (XLK) may experience increased costs for imported components due to Trump's proposed tariff policy, negatively impacting the fund.
Technology companies often rely on global supply chains. Higher tariffs on imported components would increase costs and potentially reduce profitability.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Consumer Discretionary Select Sector SPDR Fund (XLY) may face higher import costs due to Trump's proposed 'all tariff policy,' negatively impacting companies within the fund.
The Consumer Discretionary sector relies heavily on imported goods. Higher tariffs would increase costs, potentially reducing profitability and stock prices.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The First Trust RBA Amer Industrial Renaissance ETF (AIRR) could benefit from Trump's proposed tariff policy, as it focuses on domestic manufacturing.
AIRR focuses on domestic manufacturing, which could benefit from reduced competition from imported goods due to higher tariffs.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
The iShares MSCI Japan ETF (EWJ) could benefit from Trump's proposed tariff policy if it targets Chinese goods, potentially increasing U.S. imports from Japan.
If Trump's tariffs specifically target Chinese goods, other international manufacturers like those in Japan could see increased exports to the U.S.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
The iShares MSCI South Korea ETF (EWY) could benefit from Trump's proposed tariff policy if it targets Chinese goods, potentially increasing U.S. imports from South Korea.
If Trump's tariffs specifically target Chinese goods, other international manufacturers like those in South Korea could see increased exports to the U.S.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60