According to Jeremy Siegel, professor emeritus of finance at the University of Pennsylvania Wharton School of Business, President Donald Trump’s suspension on mutual tariffs is not a clear signal that investors will once again accept risky assets. “We’re not out of the woods due to customs,” Siegel said on CNBC’s “Scoobox.” “We see what is negotiated. It definitely has to be negotiations with China. Trump doesn’t know if he has as many cards as he thinks he has.” In a knee-jerk response to Trump’s announcement, stocks rallied heavily in a copyright response to put a 90-day suspension on some of the lofty “mutual” tariffs. The 9.5% daily increase in the S&P 500 ranks third since World War II. Still, the S&P 500 was red in April, 11% off its recent record. The .SPX 5D Mountain S&P 500 Siegel is also the chief economist of WisdomTree, warning that many investors have been hurt by Trump’s initial tariff rollout, making stock rebounds sustainable. He said the S&P 500 will not return to its record highs from February anytime soon. “As long as he has 75 countries to negotiate, I don’t think the shock of what happened will be able to get it from the hearts of consumers or investors for quite some time, so I don’t think we can challenge those February highs for quite some time,” Siegel said. The president “will soon take effect” tariffs imposed on imports from China due to “the lack of respect that China has shown to the global market.” China, the US’s third largest trading partner, had already retaliated by hiking tariff rates on US imports to 84%. “July 9 is a date that’s still there. The 10% tariff appears to be permanent, but this is five times the previous President Trump,” Siegel said.
