President Donald Trump’s trade tariffs, announced in April, have sparked sharp reactions across global markets.
While many interpret the move as protectionist, Cathie Wood, founder of ARK Investment Management, believes the policy shift may instead pave the way for more open and freer international trade.
Speaking on Bloomberg Television on May 19, 2025, Wood suggested the tariff strategy could signal a turning point for the US economy.
Rather than building barriers, she argued the administration’s actions are aimed at reducing restrictions and encouraging bilateral cooperation — a move that could create new investment opportunities across several industries.
Trade deals suggest focus on reducing restrictions
One example Wood pointed to was the recent US-UK trade deal, which reduced tariffs on UK car exports from 27.5% to 10%.
She described the deal as a step towards making international trade a “two-way street,” suggesting that similar agreements may follow if the White House continues to pursue this strategy.
According to Wood, if the broader trade policy continues in this direction, it could effectively function as a tax cut.
That would have implications for consumer pricing, corporate margins, and global supply chain efficiency — all of which could feed into broader economic growth.
Wood’s comments come amid increasing investor interest in bilateral trade deals and their impact on strategic sectors.
With the possibility of more tariff reductions ahead, attention is turning to industries poised to benefit most.
Technology and healthcare sectors expected to benefit
Wood highlighted sectors such as technology, healthcare, and consumer goods as likely beneficiaries of fewer trade barriers.
ARK Investment, which focuses on disruptive technologies, sees this policy shift as particularly important for industries like artificial intelligence, robotics, and genomics.
In healthcare, Wood said artificial intelligence is already helping accelerate drug discovery and development. She believes this potential has yet to be fully recognised by the broader market.
Trade reforms that ease the flow of inputs and research tools across borders could help companies scale faster and reduce development timelines.
Companies working in these sectors may also see improved investor sentiment, particularly if upcoming trade negotiations expand access to international markets or reduce regulatory hurdles for exporting innovation-led products.
Tariffs and innovation linked to the US fiscal strategy
When asked about the growing US budget deficit, Wood remained optimistic.
She suggested that the economic growth spurred by technological advancement could help offset deficit concerns.
According to her view, increased productivity and efficiency driven by AI and other emerging technologies could expand the US economy enough to reduce the relative impact of the fiscal gap. “We can grow our way out of the deficit,” Wood said.
Her comments come at a time when investors are reassessing how trade and industrial policy may shape future growth, particularly in sectors underpinned by innovation.
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