City CEO "If tariffs exceed 25%, the impact will be significant"... Concerns persist in the US financial sector

There is also 'optimism' that it should be seen as an investment opportunity

Key figures in the US financial sector, including the CEO of Citigroup, expressed concerns about the tariff policies of the Donald Trump administration at an annual economic event held in Los Angeles (LA).

On the 5th (local time), Jane Fraser, CEO of Citigroup, attended the 'Milken Conference 2025' event held at the Beverly Hilton Hotel in LA and predicted in an interview with Bloomberg TV that the final decision on tariff rates by the Trump administration will determine the ripple effect on the economy. She said, "A 10% tariff would be easier to absorb," and "If the tariff rate exceeds 25%, it will cause a greater substantial ramification."

Harvey Schwartz, CEO of investment firm Carlyle, also argued that the US-China trade war has emerged as a concern for the global economy. He emphasized, "At the beginning of the year, there were very high expectations and (investment) momentum, and everything was growth-oriented, but the sudden change in tariff policy has left people confused," and "Now is a time of uncertainty and waiting."

Mark Rowan, CEO of asset management company Apollo Global Management, also predicted in a Bloomberg interview, "If we fail to resolve the uncertainty, it could lead to two consecutive quarters of negative growth."

However, there is also 'optimism' in the investment industry that the current situation can be seen as a good investment opportunity. Carlyle's CEO Schwartz stated, "The risk premium has certainly increased, but people want to participate (in investment)" and "are actively seeking opportunities."

According to Reuters, Walid Al Mokarrab Al Muhairi, a senior executive at Mubadala, an investment company in the United Arab Emirates (UAE) that has invested 42% of its portfolio in the US, said, "We are watching, evaluating, and understanding the situation," and "We have not stopped capital investment."

Minhyung Lee, Hankyung.com reporter meaning@hankyung.com