---
title: "Plaxis: It is expected that the inflation pressure in the United States caused by tariffs will ease next year, focusing on international value stocks and small-cap stocks"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/265255031.md"
description: "Tim Murray of Prowess stated that although the tariff increase has not had a significant impact on the U.S. economy, it may weigh on consumer spending and corporate profits. Inflationary pressures from tariffs are expected to ease next year. Prowess is focusing on international value stocks and small-cap stocks, especially in regions with increased fiscal spending and loose monetary policy. The issuance of U.S. Treasury bonds may lead to rising yields, and investors are cautious about long-duration Treasury bonds"
datetime: "2025-11-11T03:05:04.000Z"
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  - [en](https://longbridge.com/en/news/265255031.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/265255031.md)
---

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# Plaxis: It is expected that the inflation pressure in the United States caused by tariffs will ease next year, focusing on international value stocks and small-cap stocks

According to the Zhitong Finance APP, Tim Murray, a capital markets strategist in the diversified asset department of Pluris, stated that the trade and fiscal policies of U.S. President Trump are becoming clearer in the summer and autumn seasons. Investors now need to assess the impact of these policies on inflation, the economy, and monetary policy. Agreements reached with major trading partners indicate that the actual tariff rate in the U.S. may be between 10% and 20%, a significant increase from 2.5% at the beginning of 2025. So far, the increase in tariffs has not had a significant impact on the U.S. economy, but it may drag down consumer spending, economic growth, and corporate profits. It is expected that the inflationary pressure brought by tariffs will ease next year.

U.S. economic activity remains robust, with real-time economic indicators only slightly declining. Spending related to artificial intelligence is booming, offsetting the ongoing weakness in the manufacturing and real estate markets.

Factors such as tariff increases, corporate tax rate cuts, and strict immigration policies have kept inflation expectations high, raising market concerns that rising prices may affect corporate profits and consumer willingness to spend. In this environment, the job market is worth watching. Small businesses account for over 70% of total U.S. employment but have weaker pricing power and are more sensitive to economic and interest rate changes, potentially facing layoff pressures.

In terms of investment opportunities, Pluris is focusing on international value stocks and small-cap stocks, particularly in regions where fiscal spending is increasing and monetary policy remains accommodative. The European and UK stock markets appear more attractive. U.S. growth stocks may benefit from the AI boom, and if the economy weakens, their solid fundamentals could provide a buffer. Additionally, stocks linked to real assets, such as energy and metal stocks, have historically served as effective hedges against inflation. The development of AI and rising electricity demand may stimulate demand for industrial metals, with some metals facing supply constraints.

Issuing more U.S. Treasury bonds to cope with deficit spending may put upward pressure on yields. Given inflation concerns and the level of U.S. public debt, there is a cautious attitude towards long-duration U.S. Treasuries as a hedge during economic downturns. In fixed income investments, there is a preference for allocating to shorter-duration assets and short-term U.S. Treasury Inflation-Protected Securities (TIPS)

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