Tariff Shock: Listed Infrastructure Amidst Higher Uncertainty

On April 2nd, the U.S. administration released a higher global tariff regime that exceeded market expectations. The implications of these increased tariffs may include:

• Rising Production Costs: Tariffs are increasing the cost of imported goods and components, creating upward pressure throughout supply chains.
• Inflationary Pressures: Businesses may pass higher costs to consumers, contributing to cost-push inflation that erodes real incomes.
• Growth Concerns: The combination of reduced consumer purchasing power and higher costs is threatening to curtail economic growth

Many economists and strategists responded to tariff announcements by reducing forecasts for economic growth and lowering forecasted earnings for broad equities. The U.S. tariff policies currently suggest tariffs could be close to 1930s levels; the policies have heightened uncertainty and increased financial market volatility. Within, we consider the potential impacts of tariffs on the listed infrastructure asset class.