As U.S. stock markets reached new record highs on Friday, June 27, one prominent Wall Street economist has acknowledged he may have underestimated the potential impact of recent trade policies.
Torsten Sløk, Chief Economist at Apollo Global Management, had previously expressed strong concerns about the economic consequences of broad tariffs introduced under President Donald Trump’s administration. In April, he warned that escalating trade tensions could trigger a recession by the summer, leading to significant job losses and economic disruption.
However, recent market performance and revised projections have prompted a shift in his perspective. In a blog post published on June 21 for Apollo Academy, Sløk shared a more measured outlook, suggesting that the administration’s trade strategy may be producing different results than originally anticipated.
“As we approach the administration’s 90-day deadline for trade negotiations, markets are beginning to speculate about the next steps,” Sløk wrote. “If tariffs are maintained—such as 30% on China and 10% on other countries—and paired with a timeline for countries to reduce non-tariff barriers, the result could be a more stable environment for business planning and financial markets.”
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