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.

Important Disclosures

The information presented does not involve the rendering of personalized investment, financial, legal, or tax advice.

Certain statements contained herein may constitute projections, forecasts, and other forward-looking statements, which do not reflect actual results and are based primarily upon a hypothetical set of assumptions applied to certain historical financial information. Certain information has been provided by third-party sources and, although believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed.

Any opinions, projections, forecasts, and forward-looking statements presented herein are valid as of the date of this document and are subject to change.

All investing is subject to risk, including the possible loss of the money you invest. As with any investment strategy, there is no guarantee that investment objectives will be met and investors may lose money. Diversification does not ensure a profit or protect against a loss in a declining market. Past performance is no guarantee of future performance.

This material is available to advisory and sub-advised clients of City National Rochdale, LLC, a Registered Investment Advisor and a wholly owned subsidiary of City National Bank.