Today the man who warned just weeks before the Dow peaked that investors needed to brace for turbulence in US markets is now discussing the Trump tariffs and the possibility of the US igniting another world war.

Legend Rob Arnott, whose firm oversees $170 billion globally, discusses tariffs and the possibility of the US going to war with China

May 24 (King World News) – Rob Arnott, Founder & Chairman of Research Affiliates:  “I was on air with a Hong Kong station just after the tariffs were announced.  I got onto the station during the break and the anchor was going ‘(heavy sigh) 145%, (heavy sigh) 145%.’  And I said, ‘Are you okay?’  She said, ‘Oh, you’re on the air?’  Then the advertising break ended, she cheerfully went on air saying, ‘The US has just imposed 145% tariffs on all Chinese goods.  It will be very interesting to see how the Chinese government responds to this, blah, blah, blah.’  Anyway, I thought it was very funny the difference between her real reaction and her on-air reaction.  The simple fact is 145% is not a tariff that’s intended to raise lots and lots of revenue.  It’s a tariff that’s intended to bring trade to a standstill.  And, of course, Trump briefly raised it to 245%.

Now, it’s been described as capitulation — that under pressure he finally flipped and said, ‘Okay, most of the tariffs are gone.’  I don’t think that is actually what happened.  Most of the people who comment on Trump’s actions either have a political axe to grind or haven’t read The Art of War or both.  The Art of War says:

“Once you accomplish your objectives, you can change tactics.”

It also says:

“If what you are doing isn’t working, you can change tactics.”

These are very straightforward Art of War, and it’s been Trump’s bible since he was in college.

Trump: Mission Accomplished
The bottom line is, we did bring the Chinese economy grinding to a standstill.  They did need to save face and not look like idiots if we wanted to have continued future dialogue with them.  And so backing off after he sent the signal, ‘We can crush your economy,’ was not a capitulation, it was an acknowledgment the mission was accomplished.  But it is interesting watching all of this.

You know that I’m not a total MAGA Trump fan, but I’m a Libertarian and I believe the correct tariff is zero, and I believe taxes and spending should be low.  And it’s not clear to me that Trump believes tariffs should be zero [laughter].  In fact, it’s clear to me that he doesn’t.  Or that taxes and spending should be sharply reduced.  But be that as it may, I think the hyperventilating that goes on with regard to everything he does is amusing.

World War III?
People ask me when I come talk to them about the investment world, ‘Are we going to get through this?’  Yes, we’re going to get through this.  ‘Is he going to put us into war?’ … To listen to Rob Arnott answer that important question as well as give a clinic on where to invest right now to benefit from the global chaos CLICK HERE OR ON THE IMAGE BELOW.

JUST RELEASED!
To listen to Alasdair Macleod discuss the wild trading in global markets as well as what to expect next CLICK HERE OR ON THE IMAGE BELOW.

© 2025 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the articles is permitted and encouraged.