Shane Solly: Harbour Asset Management spokesperson on the market reactions to Donald Trump threatening higher tariffs

US President Donald Trump is renewing his threats to Canada, vowing to slap a 35 percent tariff on its goods.

He says he'll impose the tariff on Canadian goods starting in August.

Trump's also made threats of blanket tariffs of 15 or 20 percent on most trade partners.

Harbour Asset Management's Shane Solly reveals how the markets reacted.

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Episode Transcript

Speaker 1 (00:00):
Rain Bridge, Shane Soli, Harbor Resset Management. Good evening, Hey
get it Ryan, how are you? Yeah, good to have
you here. Let's get a market update we have. The
markets reacted to the latest round of threats on terroriffs
from Trump.

Speaker 2 (00:13):
Yeah. Look so mister Trump coming out and talking about
thirty percent tariff for Mexico and Europe, threatening to thirty
five percent on some Canadian goods, and the prospect of
a blanket fifteen to twenty percent on everybody else potentially
including New Zealand's. Look. Actually, the announce it's been a
bit of a negative wake up call for markets, but
we've actually got reasonably modest response so far. Markets might

(00:35):
have been a bit complacent, but we saw on Friday
the US bond yields go up slightly. This is the
cost of borrowing for the US government. Not a huge amount,
but a little bit. US shehar market fell about point
three per percent, and it's flagging based on futures that
the US market will be down about half a percent tonight.
US dollars slightly stronger. So yeah, bit of a wake

(00:56):
up call, but not the same degree of sell off
we saw back at eight folk six on that infamous
liberation there.

Speaker 1 (01:02):
What would it mean for US if he did go
ahead and do a fifteen or twenty percent.

Speaker 2 (01:07):
Yeah, Look, I think it's a bit of a headwind
for some of our key exporters, certainly beef and wine.
There is particularly one area that is New Zealand exports
a lot into the US. Headwind for some of the
manufacturers and services companies. I do wonder about it just
causing a bit more uncertainty for the wider business in
the sumer confidence levels. Fisher and Proper Health key here

(01:29):
in New Zealand Shire Market, our biggest company by market cap,
is exposed to tariffs on the Mexican product that produces
that goes into the US. But I think at this
stage it seems like that product will be covered by
the U s NCA, so it may avoided any issues,
and certainly the FMP ten is pretty stavy in dealing
with these issues.

Speaker 1 (01:49):
And any reaction from local markets.

Speaker 2 (01:51):
Yeah, pretty pre muted today actually, Ryan the New Zealand
dollar up sorry down slightly against the US dollar around
sixty since across the New Zealand ten year government bond
yield up slightly three basis points to four point five
per seven percent in New Zealand. Schimmak pretty much fled
on the day, so no, not not now part of
the world, but we'll wait for overnight.

Speaker 1 (02:13):
Appreciate your time. Shane Shane Solly Harborresset Management with our
market update for this evening.

Speaker 2 (02:18):
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