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The past few days have been, shall we say, climactic on Wall Street, as President Trump’s tariff plan has created much of the short-term pain that he predicted. Stocks have lost several trillion dollars since Friday, but news that Trump has paused most of his tariff war led to the most productive uptick in Wall Street’s history on Wednesday. Joe Borelli is the former New York City Council speaker and currently is the managing director of the Chartwell Strategy Group. He appeared on 710 WOR’s Mendte in the Morning program to offer his theory on why the tariff plan has been so taxing on the patience of investors.
Speaking with host Ken Rosato, who is sitting in for Larry Mendte, Borelli feels there is only one part of Trump’s strategy to be concerned about: “The market dropped significantly over the last two weeks, not because of underlying fundamental problems, but because of the news cycle, so I’m not concerned in the long-term play. I am concerned about the relationship with China and how the trade war will play out… because it is an uncertainty; the goal is to poke the bear, and we are poking the bear, and it’s to be determined what will happen. [But] I think the tariffs on all the other countries will be worked out with favorable new deals.”
Like many observers who feel Trump’s economic strategy could work, Borelli stresses patience above all else: “Look, it’s a dance, and we’re seeing the opening steps, and I don’t think President Trump or President Xi wants to step on each other’s toes. There is a fundamental imbalance with trade against China… [but] I think he does have a long runway on this, and I think he has a long-term plan.”
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