Balancing the Global Tariff Scale: A Chat with Ben Emons, Founder of FedWatch Advisors
In a recent interview, Ben Emons, the insightful founder of FedWatch Advisors, shared his thoughts on President Trump’s proposed tariffs on autos, pharmaceuticals, and chips. Emons believes these tariffs would merely bring global tariff rates into balance, rather than causing significant disruption.
The Global Tariff Landscape
According to Emons, the global tariff landscape has been shifting for some time now. “The average global tariff rate is around 5%,” he explained. “However, certain industries have seen much higher tariffs. For instance, agricultural products and automobiles have historically faced higher tariffs compared to other sectors.”
President Trump’s Proposed Tariffs
President Trump’s proposed tariffs on autos, pharmaceuticals, and chips aim to level the playing field, according to Emons. “The U.S. currently has a 2.5% tariff on automobiles, while the European Union imposes a 10% tariff. The proposed U.S. tariff on European cars could bring the rates closer together. Similarly, the proposed tariffs on pharmaceuticals and chips could help the U.S. negotiate better trade deals and protect domestic industries.”
Impact on Consumers
- Higher prices for consumers: The tariffs could lead to higher prices for automobiles, pharmaceuticals, and chips. However, Emons believes that the overall impact on consumers would be minimal, as these industries represent only a small fraction of consumer spending.
- Employment opportunities: The tariffs could create jobs in the affected industries, as domestic production would increase in response to the tariffs.
Impact on the World
- Trade tensions: The tariffs could exacerbate trade tensions between the U.S. and its trading partners, potentially leading to a trade war.
- Retaliation: Countries affected by the tariffs may retaliate with their own tariffs, which could harm U.S. exports.
- Supply chain disruptions: The tariffs could disrupt global supply chains, potentially leading to shortages and higher prices for certain goods.
Conclusion
In conclusion, Ben Emons of FedWatch Advisors believes that President Trump’s proposed tariffs on autos, pharmaceuticals, and chips would bring global tariff rates into balance. While there may be some short-term disruptions, the overall impact on consumers and the global economy is likely to be minimal. However, there are risks, including higher trade tensions, potential retaliation, and supply chain disruptions. As always, it’s important to stay informed about global trade developments and how they may impact your business or personal finances.
So, the next time you’re out shopping for a new car or filling a prescription, remember: tariffs might be at play, but the impact on you may be smaller than you think!
Sources
1. “Ben Emons: Trump Tariffs on Autos, Pharma Could Bring Global Rates into Balance.” CNBC, 10 May 2019,
2. “Global Tariff Rates: Overview.” World Bank,
