Rising U.S. tariffs could trigger a chain reaction that stifles the country\u2019s initial public offering (IPO) market, according to a new analysis. Drew Bernstein, co-chairman of financial consultancy MarcumAsia, told CGTN that supply chain disruptions caused by trade barriers may fuel inflation and force the Federal Reserve to raise interest rates \u2013 a scenario that could cool investor appetite for new stock listings.
How Tariffs Could Choke Investment
Bernstein emphasized that tariffs often lead to \u201cdelayed pain,\u201d with companies initially absorbing higher costs before passing them to consumers. Sustained price hikes could pressure the Fed to maintain elevated borrowing costs, making IPOs less attractive amid economic uncertainty. Over 130 U.S. companies have gone public this year, but Bernstein warns this momentum might slow if market conditions tighten.
Global Implications
The warning comes as emerging markets and multinational firms navigate shifting trade policies. Startups and tech firms eyeing U.S. IPOs may face tougher valuation hurdles, potentially redirecting capital flows to markets with lower volatility. Bernstein\u2019s insights highlight interconnected risks for entrepreneurs and investors in a geopolitically charged economy.
Reference(s):
cgtn.com
