Market Reaction to Tariffs Subdued, BMO CEO Says

• Market reaction to recent tariff decisions has been subdued, with outcomes largely priced into bond markets.
• Corporates have adapted to tariff instability by rebuilding supply chains and enhancing resiliency.
• A significant demand push for metals, driven by AI and global order reorganization, is anticipated to create supply bottlenecks.
• Regulatory reform and expedited permitting for domestic production, particularly in the US, are active and important conversations with positive developments.

Darryl White, CEO of BMO, observes a subdued market reaction to recent tariff news, attributing it to the outcome being priced into bond markets and corporates adapting with resilient supply chains. He highlights a massive demand surge for metals, driven by AI and global reorganization, which will eventually face supply bottlenecks. White emphasizes the critical need for regulatory reform and expedited permitting for domestic production, noting positive developments in the US.