In this clip from The Call @ Hedgeye, Senior Macro Analyst Josh Steiner dives into the latest news around the Trump administration's aggressive trade policy, which is starting to take shape under Treasury Secretary Scott Bessent. Steiner breaks down how the administration could cut into the massive (and still growing) U.S. deficit.
"Trade policies over the decades have really just hollowed out the middle class, definitely to the benefit of corporate margins and executive compensation," Steiner says. "I think Trump and Bessent are trying to undo basically 40 or 50 years worth of damage within 4 to 6 months, which is not going to be pain-free."
While he notes that it is an admirable goal, including managing national debt costs, Steiner adds that growth could be "subdued in a meaningful way" in the second quarter as a result of the tariffs planned to take effect on April 2nd.
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