In the latest episode of “Talking Trade,” Great Lakes Advisors Chief Investment Strategist Jason Turner says trade disruptions in the Middle East are creating opportunities for exporters elsewhere.
Turner notes the conflict with Iran has largely impacted commodities being transported through the Strait of Hormuz out of the region, but other markets are adapting to meet global demand.
“Those minerals, those goods that are coming from the gulf … they are produced other places,” he said. “And you’ve got countries in Europe, countries in the far east that had been large trading partners of some of those Middle Eastern nations … looking to other places, looking to the United States, looking to Australia, looking to other areas in South America, for example.”
And while commodities coming out through the strait are facing blockades, finished goods that would normally enter the region through the key shipping lane are also being disrupted, Turner explained.
The discussion explores how exporters can navigate the current landscape, including strategies such as contingency planning and running potential scenarios.
“I definitely think flexibility is key … What happens if tariffs were to go up, and have a 25% tariff slapped on anything going between us here?” he said. “Where can I pivot, where can I obtain inputs from, where can I export to?”
He also said it’s “a great time to be thinking about developing new markets” as an exporter, arguing those that are more entrenched will take a larger hit from the conflict.
“There’s those that are also going to take advantage, and become the new supplier for something. Those doors are starting to open up,” Turner said. “The longer the current conflict persists, and the higher the degree of uncertainty around tariffs, the more those other nations are going to look for new markets and new providers.”
Meanwhile, Turner weighs in on stock market trends amid the uncertain environment, corporate income growth, the path ahead for tariff refunds and more.
Talking Trade is hosted by E.M Wasylik Associates Managing Director Ken Wasylik and M.E. Dey & Co. CEO Sandi Siegel.
The show is sponsored by the Dairy Farmers of Wisconsin, Michael Best Strategies and Carroll University.
