Investor Steve Eisman, known for inspiring the film "The Big Short," recently shared his thoughts on President Donald Trump’s trade policies during an appearance on CNBC. Eisman discussed the market’s reaction to Trump’s announcement of global tariffs, suggesting that the U.S. could emerge victorious in these trade disputes if cooler heads prevail.
Eisman emphasized that the current market volatility stems from political uncertainty rather than economic fundamentals. He believes that if the political situation stabilizes, the markets will likely reflect that calm. He pointed out that many economic experts criticize Trump’s tariff strategy because it disrupts long-held beliefs about trade. According to Eisman, Trump’s willingness to challenge the status quo is what makes this situation so unsettling for many.
He argued that countries like Canada and Mexico, which rely heavily on exports to the U.S., would ultimately have to negotiate in America’s favor. Eisman stated that if these countries act rationally, they will likely lower their trade barriers to avoid economic harm.
However, he acknowledged that not all decisions in politics are driven by rationality. Some politicians may fear losing jobs if they concede to U.S. demands, which could complicate negotiations.
Eisman concluded by noting that Trump is following through on his campaign promises, a trait he finds rare among politicians. He believes that whether people agree with Trump or not, they cannot deny that he is acting on his commitments.