President Donald Trump announced a 10% baseline tariff on all imports to the United States, with the possibility of higher duties on major trading partners, potentially triggering a trade war and impacting the global economy. Consequently, trading partners are likely to retaliate with countermeasures that could lead to increased prices for various products.

Morningstar analyst Seth Goldstein anticipates a decline in sales volume due to the tariffs, resulting in higher prices for consumer goods. The impact on profits for chemical producers could be significant if tariffs are widely imposed. However, companies producing goods domestically in the U.S. may experience a lesser direct impact.

Chief Economist Brian Jacobsen views the tariffs as reciprocal, which could lead to negotiations rather than immediate retaliation. Despite this, there will still be costs incurred, either in the form of elevated consumer prices or reduced profits, which may not be favorable for investors.

Executive VP David French of the National Retail Federation emphasizes that tariffs create uncertainty for American businesses and consumers. He highlights that tariffs are essentially a tax on U.S. importers, which may ultimately be passed on to consumers. French urges President Trump to address trade imbalances without causing economic instability and higher prices for American families.

Labor studies director Art Wheaton discusses the time and financial investments required to establish new manufacturing plants in response to the tariffs. He explains that companies prefer stability, and frequent policy changes could delay investment decisions as they await clearer, more consistent signals for long-term planning.

Partner and CIO Michael Ashley Schulman speculates that Trump's trade actions aim to bring manufacturing jobs back to the U.S. and disrupt the Chinese economy. He suggests that imposing significant tariffs on Chinese goods could lead to factory closures, heightened unemployment, and potential price adjustments in the U.S. market.