Markets are overreacting to ‘shock’ of tariffs

Markets are reacting too strongly to the proposed steel and aluminum tariffs by President Donald Trump, according to former White House communications director Anthony Scaramucci.

“I would say market participants are overreacting right now because, by and large, [Trump] has proven over the last 13 months that he’s a common-sense person on the economy, a common-sense person on economic growth and American prosperity,” Scaramucci told CNBC’s “Halftime Report.” He also said investors are reacting too much to the “shock of the idea of potential tariffs.”

“I would caution people not to overreact here,” he said.

Trump announced last week that he wanted to implement tariffs on steel and aluminum imports. The announcement created friction between Trump and his chief economic advisor, Gary Cohn, who resigned from his post Tuesday night. Cohn opposed the implementation of tariffs.