Jeremy Siegel On Why Trump's Tariffs Are 'Not Good Capitalism:' Businesses Have To 'Go To The Court Of Donald Trump' - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), SPDR S&P 500 (ARCA:SPY)

Core Viewpoint - Jeremy Siegel criticizes President Trump's trade policies, particularly the tariff exemptions, arguing they contradict free-market principles [1][2]. Trade Policy Critique - Siegel believes that requiring businesses to seek tariff exemptions from the White House creates a system of favoritism rather than promoting an open market [2]. - He describes Trump's tariffs as a "discriminatory" and "very imperfect" version of a consumption tax system, which he supports in principle [2]. Economic Impact Assessment - Siegel assesses the overall impact of tariffs as "net a negative" for both the U.S. economy and the stock market [3]. - Despite this, he remains optimistic about the financial landscape, noting that other aspects of Trump's agenda are mitigating the negative effects of protectionist trade policies [3]. Positive Aspects of Trump's Agenda - Key positive elements include deregulation, the extension of tax cuts, and a less aggressive anti-merger stance compared to the previous administration [4]. - Siegel argues that these factors more than offset the negative impacts of tariffs [4]. Tariffs as a Negotiation Tool - Siegel has noted a decrease in his concerns about a trade war, citing the administration's willingness to negotiate lower tariff rates as a sign that tariffs are used as leverage rather than permanent barriers [5]. - However, he still views the reliance on presidential exemptions as a flaw in the economic structure [5]. Market Performance - On a related note, the futures of major indices like the S&P 500, Nasdaq 100, and Dow Jones were trading higher, indicating positive market sentiment following a strong close [6].