Mark Rowan, CEO of Apollo Global Management (NYSE:APO), has publicly disagreed with Warren Buffett’s perspective on tariffs and trade, viewing them as a strategic instrument rather than a “weapon”.
What Happened: During an interview with Yahoo Finance at the Milken Conference in California, Rowan expressed his contrasting views on trade and tariffs. Unlike Buffett, who warned against using trade as a “weapon”, Rowan sees tariffs as a tool that can be strategically effective. "There are smart tariffs and there are stupid tariffs," stated Rowan. According to the CEO, calling trade a “weapon” gives it a “political context”.
Rowan cautioned about the potential risks of imposing broad, high tariffs, such as the proposed 145% on Chinese imports. He warned that such measures could lead to significant harm for U.S. businesses, including possible retail bankruptcies. He also questioned the U.S.’s ability to endure prolonged trade disruptions without clear exemptions or phased implementation.
Rowan suggested a more cooperative approach to trade policy, proposing a North American economic bloc that would unite the U.S., Mexico, and Canada as a global powerhouse. He criticized recent U.S. policies that have introduced uncertainty and tarnished the nation’s global reputation.
“We introduced uncertainty and in the long term we actually damaged the U.S. brand by just moving precipitously moving in a non-choreographed way,” stated Rowan.
SEE ALSO: Warren Buffett Says He Is ‘Embarrassed,’ But ‘Tim Cook Has Made Berkshire A Lot More Money Than I’ve Ever Made’
Why It Matters: Rowan’s comments come in the wake of Warren Buffett’s criticism of the current administration’s trade policy at the annual shareholder meeting of Berkshire Hathaway (NYSE:BRK) (NYSE:BRK). Buffett warned that the imposition of punitive tariffs on global trade could backfire, labeling it a severe mistake.
Rowan’s differing views on tariffs and his bullish stance on America’s fundamentals are noteworthy. Meanwhile, Apollo Global Management has outperformed the market over the past five years by 13.11% on an annualized basis, producing an average annual return of 27.25%.
Although the Apollo CEO expresses concern over policy instability, Rowan remains confident in America’s core strengths, highlighting the nation’s competitive edge in infrastructure, semiconductor manufacturing, energy, and defense production.
“We’re seeing across the economy we’re seeing uncertainty we’re… seeing a slowdown that does not mean that cannot pick up again if we have certainty,” opined Rowan.
Apollo Global Management stock has surged more than 19% over the past month.
- READ MORE: ‘Sure Seems Like An Admission’--Rand Paul Asks, ‘Wasn’t The Pro-Tariff Crowd Trying To Tell Us Tariffs Wouldn’t Increase The Cost Of Goods?’
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Shutterstock
