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Trump’s Reciprocal Tax To Hit Company Earnings, Seth Freeman Says

The market’s reaction to Trump’s “reciprocal tax” plan is muddled with other developments. Here’s why.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S. (Photographer: Michael Nagle/Bloomberg)
Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S. (Photographer: Michael Nagle/Bloomberg)

U.S. President Donald Trump’s plan to impose a reciprocal tax on America's trade partners will negatively affect earnings for many companies, according to Seth Freeman, senior managing director at EM Capital Management.

As expected, Trump slapped a 25 percent tariff on steel imports and 10 percent on aluminum on Thursday, setting off a race among nations and companies to win relief from his steel and aluminum tariffs. However, there was a sense of relief as he showed more leniency than initially thought.

Market participants are now focusing on actions to follow from countries including China. “It is a very complicated situation, not a binary one,” Freeman said.

Here’s the full conversation.