The topic of trade has been in the headlines this year because the Trump administration is trying to revise a number of trade relationships. While the media has been quick to label this a trade war, we feel it is important to use proper labels when discussing the topic of trade. Given the total size of new tariffs issued to date, we feel it is better to describe the current state of trade policy as a trade negotiation rather than a trade war.

While these negotiations may cause short-term market volatility, the Trump administration’s desire for free, fair, and reciprocal trade may be good for everyone — including our trading partners — in the long run. While it is too early to tell which countries and trading groups are willing to revise their existing agreements and what may ultimately get updated, our hope is that, in the end, the direction of tariffs around the world is lower.

Watch our 8-minute Quarterly Perspectives video for a better understanding of last quarter’s performance and a discussion on tariffs and trade negotiations.