Cathie Wood Sees Unexpected Upside in Tariff Tensions

As markets react nervously to renewed trade measures under President Trump, ARK Invest founder Cathie Wood is taking a contrarian stance: she believes the current disruption could ultimately unlock more open markets and long-term growth.

Speaking in a recent interview, Wood argued that tariffs might be used as leverage to eliminate outdated trade barriers rather than to build new ones.

The recent reduction in auto tariffs under the U.S.–UK trade deal, she said, could signal a broader shift toward reciprocal agreements — and if replicated, would effectively act as a tax cut for U.S. industries.

Wood highlighted areas like tech and healthcare as key beneficiaries. In her view, lifting trade restrictions could fast-track the adoption of AI, robotics, and biotech across borders. She noted that AI, in particular, is revolutionizing drug development in ways investors haven’t yet fully priced in.

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When questioned about fiscal concerns, she remained bullish, suggesting that technological breakthroughs could fuel enough economic expansion to ease deficit pressures.

While the market fixates on short-term risks, Wood’s message is clear: disruption may be uncomfortable, but it could be laying the groundwork for a more competitive and innovation-driven economy.

Alexander Stefanov