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    Cathie Wood: Donald Trump’s Tariffs Could ‘Free Up’ U.S. Market in 2025 

    Story Highlights
    • Cathie Wood believes Trump’s tariffs could lead to freer markets, boosting US economic growth.

    • She highlights technology, healthcare, and AI as key sectors poised to benefit from reduced trade barriers.

    • Wood predicts innovation will help the US overcome its growing budget deficit.

    President Donald Trump’s trade tariffs have caused quite a stir, shaking markets and raising concerns. But could this shakeup actually be a sign of better things ahead? 

    Cathie Wood, founder of ARK Investment Management, believes the recent volatility might mark a turning point for the US economy and stock markets.

    In a Bloomberg Television interview on May 19, 2025, Wood shared her positive outlook: the tariffs announced in April could lead to freer, more open markets – creating new opportunities across several industries.

    Cathie Wood Sees Tariffs as a Way to Free Up Markets, Not Build Walls

    Many see Trump’s tariffs as building barriers, but Wood thinks the opposite. She believes the White House’s plan aims to reduce trade restrictions and open markets.

    “If that is where we end up, that’s a tax cut. That’s a positive,” Wood stated.

    She pointed to the recent US-UK trade deal as a good example, which cut tariffs on UK car exports from 27.5% down to 10%. Wood hopes this is just the start of more agreements that turn international trade into a “two-way street” benefiting both the US and its partners.

    Technology, Healthcare, and Innovation Could Gain Big

    Wood also highlighted how sectors like technology, healthcare, and consumer goods could benefit from fewer trade barriers.

    Her firm, ARK Investment Management, focuses heavily on disruptive technologies like artificial intelligence, robotics, and genomics. Wood believes that reducing trade restrictions in these areas could speed up innovation and growth.

    In healthcare, she stressed that AI is especially powerful. New AI tools are helping to speed up drug discovery and development – an opportunity the market hasn’t fully recognized yet.

    When asked about the rising US budget deficit, Wood was optimistic. She thinks rapid technological progress will help the US economy grow enough to overcome the deficit. “We can grow our way out of the deficit,” she said.

    Why Investors Should Watch This Closely

    Cathie Wood’s views offer a fresh perspective amid all the market uncertainty. She believes that Trump’s tariffs might actually help lower trade barriers, boost growth, and drive innovation – ideas worth keeping in mind as investors look beyond short-term ups and downs.

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    Freer markets and cutting-edge technology could be key to unlocking new growth, especially in sectors primed to benefit from these changes.

    FAQs

    How can tariffs lead to freer markets?

    By renegotiating deals to cut tariffs, creating two-way trade that reduces overall restrictions.

    Can the US grow out of its budget deficit?

    Wood believes rapid tech-driven growth—especially in AI and genomics—can boost GDP to outpace the deficit.

    What was the impact of the US-UK trade deal on car exports?

    The deal significantly lowered tariffs on UK car exports to the US, from 27.5% down to 10%

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