Are US Tariffs Similar To The COVID-19 Global Disruption

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This video is in response to a question asked by one of my followers on TradingView.

He specifically asked if the current US Tariffs create a similar situation to the COVID-19 supply disruptions and how it may result in longer-term market disruptions.

In this video, I try to answer these questions and highlight the differences I see related to what is happening now vs. the COVID-19 shutdown.

It is an interesting question.

I certainly see similarities, but I also see vast differences in terms of how the global markets are attempting to address the US tariff issues.

First, the current tariff issues are somewhat self-inflicted, not something like COVID-19 (unavoidable).

Second, the global central banks acted in concert to present immense liquidity to support a global shutdown with COVID. I don't see that happening right now.

Supply-side disruptions are evident, but we'll see how they play out over the next 60- 90+ days.

Longer-term, I hope these tariff issues are resolved before the global economy moves into a deeper recession. I will state that hard assets are likely to take a hit over the next 60-90+ days across the globe.

Any moderate (think 15 to 35%) slowdown in production, shipping, and consumption across the globe is going to be felt all over the planet. It is not going to be isolated to just one or two areas.

This is the smackdown that I don't believe anyone is really ready for. And that creates the urgency to resolve the tariff issues asap.

Hope this helps.

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