Ignore Trump's Tariff Talk; Buy Retail and Emerging Markets Stocks -- Analyst

President Trump will eventually learn that trade wars don't work, so don't sell your retail or emerging markets stocks as a result of his tariff talk.
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President Donald Trump will eventually figure out that trade wars hurt everybody, so don't sell your retail or emerging markets stocks as a result of his tariff talk, says Scott Clemons, chief investment strategist at Brown Brothers Harriman.

If Trump were to carry through on his threatened 45% tariffs on imported goods from China, the price of a wide variety of products on the shelves of Walmart(WMT) - Get Report would rise within days. Rising prices, in turn, lead to inflation and lower standards of living.

That's why Wilbur Ross, the incoming Secretary of Commerce, has referred to tariffs as a negotiating tool -- a starting point rather than an ending point -- in trade negotiations, said Clemons.