Welcome to Thoughts on the Market.
I'm Michelle Weaver, Morgan Stanley's US thematic and equity strategist,
and I'm Ariana Salvatore, US public policy strategist.
Yesterday, all eyes were on President Trump's announcement about sweeping global tariffs.
Today,
we want to dig deeper into the details of the new executive order and how companies can counteract negative impacts from tariffs at the micro level.
It's Thursday, April 3 at 10 a.m. in New York.
Ariana, you've been on the show quite a bit recently to discuss tariffs and their various repercussions.
It's the main thing the market cares about right now.
Did the April 2 announcement change your views on the key objectives of President Trump's tariff policy?
Earlier this year,
we identified the Trump administration as having really two key objectives when it comes to tariff implementation.
So on the one hand, we think the administration recognizes that they can use tariffs for quicker policy concessions.
We saw that with Mexico and Canada, for example.
But on the other hand,
the administration also has signaled an intent to use tariffs as a means to more significantly de-risk in key strategic industries and engage in a broader-based supply chain realignment globally.
So what we saw yesterday was effectively, in our view, a mix of both.
It didn't change our expectations for how the administration would approach this date for the overall trade review.
President Trump, in advance of yesterday,
signaled that he wanted to retool the global trading order based on this premise of reciprocity.