KKR's McVey Sees US Tariffs on China Coming Down 20%-30%

Watch KKR's McVey Sees US Tariffs on China Coming Down 20%-30% - Bloomberg on Dailymotion

Transcript

00:00I was reading your thoughts from the road and you were in Japan and China.

00:04What are your takeaways from the news we have today and how does that dovetail with your experience in Asia?

00:10Look, I think the Asian markets are going to perform weaker dollar.

00:13I think the news that was just reported is what we hear on the ground.

00:17Everybody I met with in China said there's going to be a deal.

00:20So I think tariffs come down 20 or 30 percent.

00:24I think the two entities, particularly President Trump and Scott Bessent, want to get a bigger deal done.

00:30And then you have the hawks, both Republicans and Democrats, under them.

00:33I think they'll probably have the potential to do a little bit more because I think the two entities need each other.

00:39We need rare earths and ultimately they need to boost their technology infrastructure.

00:45And so I think they're going to try to find a way to meet in the middle.

00:50I don't think it's going to be perfect and will be tension.

00:52We clearly have left the decades that I used to go there where China was going to consume or China exported.

00:58This is a very different China that we see right now.

01:00They're huge in industrial automation.

01:02They're huge in digitalization and they're really big in the green economy.

01:06I think they're going to continue to export that and that'll create a little bit of a deflationary impact on the world.

01:11But even with that said, I think these two entities at the top level want to try to get something done.

01:16And I think the markets, both in the U.S. and in China, have been responding to that.

01:22Japan, on the other hand, that continues to be our go-to market, big corporate carve-out market.

01:27Going back to Abenomics, they wanted to make that better.

01:31We've turned over a lot of prime ministers recently.

01:34But the corporate reform story is alive and kicking and it's an incredibly powerful story.

01:40Cheap financing, negative real rates.

01:42People need to invest.

01:44And the corporations want help making their businesses better.

01:48So that's a great backdrop for what we do.