Recently, the Trump Administration announced that it is imposing tariffs on steel and aluminum producers. In this month’s Market Perspectives video, City National Rochdale CEO Garrett D’Alessandro and new Chief Investment Officer Matthew Peron help define what tariffs are and discuss their potential impact on the economy.

In general, it is likely that these tariffs could have a net negative effect on the economy in that they may help some industries—in this case, steel and aluminum—but could hurt downstream industries such as the automobile industry and other manufacturers.

However, our view as to the impact of these tariffs is that at this point they’re very isolated and targeted. We’ve been at these levels or even higher before, so we don’t expect these tariffs to have any significant impact on the economy.

City National Rochdale’s view of the robust growth that we’re seeing and our outlook on risk assets such as equities, corporate credit, and opportunistic fixed income remains intact.

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