29 December 2025 Punjab Khabarnama Bureau : Bank of America Chief Executive Officer Brian Moynihan said signs are emerging that former President Donald Trump’s tariff-driven trade approach is beginning to de-escalate, offering cautious optimism to businesses and financial markets that have long grappled with uncertainty surrounding global trade policy.
Speaking during a recent discussion with investors and business leaders, Moynihan noted that while tariffs were initially deployed as a blunt tool to reshape trade relationships, their use now appears to be moving toward a more targeted and negotiable phase. According to him, the shift could help reduce pressure on supply chains and ease cost burdens on companies and consumers.
“The rhetoric around tariffs has softened compared to earlier periods,” Moynihan said, adding that businesses are increasingly factoring in the likelihood of negotiated outcomes rather than prolonged escalation. “Markets respond to clarity, and even incremental de-escalation can improve confidence.”
Tariffs were a defining feature of Trump’s economic agenda, particularly during his presidency, when the U.S. imposed levies on hundreds of billions of dollars’ worth of imports, especially from China. The measures were intended to address trade imbalances, protect domestic manufacturing, and pressure trading partners to revise existing agreements.
However, those tariffs also contributed to higher costs for manufacturers, retailers, and consumers, while creating uncertainty for global supply chains. Over time, businesses adjusted by diversifying suppliers, relocating production, or passing costs on to customers. Moynihan said many companies are now better prepared to handle trade disruptions than they were several years ago.
As Trump remains a central figure in U.S. politics and continues to influence trade debates, financial leaders are closely watching how tariff policies may evolve. Moynihan suggested that the focus appears to be shifting from broad-based tariffs to more selective measures tied to strategic industries such as technology, energy, and national security-related manufacturing.
“This isn’t about removing tariffs overnight,” he said. “It’s about recalibrating them in a way that allows dialogue and economic growth to coexist.”
Bank of America, one of the largest lenders in the United States, works closely with corporate clients across industries and geographies, giving it a broad view of how trade policies affect real economic activity. Moynihan said clients are increasingly optimistic that the worst period of tariff-driven volatility may be behind them.
He also pointed to improving communication between governments and multinational corporations, which he said is helping companies plan investments with greater confidence. While geopolitical risks remain, including tensions between the U.S. and China, Moynihan emphasized that predictability matters more than policy perfection.
Financial markets have shown sensitivity to any signals of easing trade tensions. Equity markets often react positively to news suggesting reduced tariffs, while bond markets tend to price in lower inflation risks when trade barriers soften. Moynihan said this dynamic underscores how closely trade policy is tied to broader economic conditions.
Economists note that tariffs can contribute to inflation by raising input costs, an issue that has been particularly relevant in recent years as central banks battled price pressures. A moderation in tariff escalation could therefore support efforts to stabilize inflation without slowing economic growth too sharply.
Still, Moynihan cautioned against assuming a complete reversal of trade policies. He said tariffs have become a normalized policy tool across multiple administrations, not just Trump’s. “This is now part of the policy toolkit,” he said. “The question is how it’s used.”
Business leaders echoed that sentiment, saying companies have learned to operate in an environment where trade rules can change quickly. Many firms are investing in supply chain resilience rather than betting on a return to pre-tariff globalization.
From a banking perspective, Moynihan said easing trade tensions could encourage capital spending and cross-border investment, areas that tend to slow during periods of uncertainty. Increased investment activity would benefit lenders, exporters, and workers alike.
He also highlighted the importance of domestic economic fundamentals, noting that consumer spending and employment remain key drivers of growth regardless of trade policy shifts. “Trade matters, but it’s one piece of a much bigger picture,” Moynihan said.
Looking ahead, Moynihan said investors should focus less on headline-driven volatility and more on long-term structural trends, including digitalization, energy transition, and demographic shifts. In his view, a gradual de-escalation of tariff conflicts would allow businesses to redirect attention and resources toward growth and innovation.
While uncertainty remains, Moynihan’s comments suggest that some of the sharpest edges of tariff disputes may be softening. For markets and companies weary of prolonged trade battles, even modest progress toward stability could mark a meaningful turning point.
Summary
Bank of America CEO Brian Moynihan says Trump-era tariffs show signs of de-escalation, offering cautious optimism that easing trade tensions could improve business confidence and market stability.