There are projections that the trade war initiated by Trump will also lead to an inevitable slowdown in U.S. growth.
Leigh Harrison, head of real assets at Macquarie Asset Management, noted during the 50th Overseas Investment Council meeting by Korea Investment Corporation (KIC) on the 20th that, "Due to the policies of the Trump administration, the effective average tariff rate in the U.S. could soar to as high as 20% this year."
He also emphasized that "a slowdown in growth in major global economies is also inevitable."
The Overseas Investment Council is a forum established by KIC in 2014 for domestic public sector investment institutions to cooperate in overseas investment processes, held quarterly. A total of 26 domestic institutions participate as members of the council.
The council was established to assess the impact of the Trump administration's tariff policies and discuss global infrastructure investment strategies. Representatives from the institutional sector of Macquarie Asset Management, including Leigh Harrison, were the presenters.
Ben Way, group head of Macquarie Asset Management, said, "Infrastructure assets are attractive defensive assets in the current volatile investment environment, considering they can hedge against inflation and generate stable cash flows."
Ed Northam, head of core renewable energy at Macquarie Asset Management, stated, "Despite changes in the Trump administration's policies, the competitiveness of renewable energy prices and the upward trend in electricity demand will continue," adding that "the renewable energy and energy transition investment market in the U.S. is attractive."
Meanwhile, Park Il-young, CEO of KIC, remarked, "We will continue to play a role as a hub for global investment insights to promote cooperation and collaboration among domestic institutional investors."