Part 5/7:
The potential impact of tariff wars on trade relations raises concerns for investors. Aarn explains that the ownership level of Chinese equities is modest in relation to global markets, which mitigates the direct impact of U.S. tariffs on Chinese stocks. However, the burdens of tariffs on U.S. consumers could hint at higher inflation and slower growth as companies that rely on Chinese imports pass costs onto consumers. This unintended consequence could ultimately act as a tax on consumers, further complicating economic forecasts.