Rockefeller's Ruchir Sharma: Negative impact from tariffs is being offset by 'AI mania'

Tariffs Impact & Offsetting Factors - Tariffs' negative impact is offset by the AI boom, tax offsets in the budget bill, and declining energy costs and rents [3] - Approximately 80% of tariff costs are absorbed by US corporations and consumers, with the remaining 20% by foreign suppliers [7] - The US is currently receiving 1% of GDP in tax revenues from tariffs [14] AI Mania & Capital Expenditure - AI is boosting economic activity and animal spirits, leading to a CapEx boom [3][11] - Hyperscalers' CapEx estimates have increased from $290 billion to over $350 billion [7] - Foreigners are investing in the US due to the AI boom, helping to fund the US deficit [13][17] US Economy & Deficit - The US economy's vulnerability lies in its budget deficit, currently at 65% of GDP [9][16] - The US relies on foreign savings to fund its deficit, making it more vulnerable than countries like Japan [13] - The US is able to offset the pain from tariffs because global markets are willing to fund its large budget deficit [10]