Tim Seymour, Seymour Asset Management CIO, joins 'The Exchange' to discuss Trump's warnings of tariffs on BRICS nations and how it impacts international investing.

Tim Seymour, Chief Investment Officer at Seymour Asset Management, addressed the implications of potential new tariffs on BRICS nations and their effect on global investment. He noted that while tariffs could raise effective tax rates to levels not seen since the post-World War II era, the broader investment strategy for markets outside the U.S. remains unchanged.

Seymour also commented on the recent movements in the U.S. dollar, suggesting that the overall trend remains toward a weaker dollar. He explained that this is not necessarily due to large-scale selling of U.S. assets, but rather global investors hedging against further dollar weakness. Seymour expects continued fund flows into non-U.S. equities, driven by long-term underperformance and underweight positions in these markets.

The trend on the weaker U.S. dollar will continue, says Tim Seymour

Let's bring in Tim Seymour to talk a little bit more about this. He's the CIO of Seymour Asset Management and a CNBC contributor. Tim, welcome to you. Hi, Kelly. First of all, where do we stand on the tariff front with many of these countries? I mean, they're already caught in the crosscurrents of what Megan and I were just discussing. So another 10 percent, what does that mean? Well, it means we have effective tax rates here that are higher than they've been since post-World War II, and they might get a lot worse. And we've got three deals. Maybe we know one of them is done and the least important is Vietnam. But I think the headlines today are a reaction to a gathering over the weekend and frankly, a group of multinationals that have met before and are looking to at least have a role in a world that is not necessarily reliant on the U.S. that is seeking trade deals away from the U.S. And, you know, while this shouldn't be seen as acrimonious to the U.S., it is something that obviously ruffled feathers. I think for the investment strategy around investing outside the U.S., it doesn't change anything, frankly. I think the tariff profile of the rest of the world will continue to evolve over the next couple of days. And and we clearly have some volatility around these announcements. Yeah, so you were a little surprised, though, that the dollar is rising, you know, half a point or percent today. No, it's fascinating. I mean, if anything, I would think that these dynamics, while in terms of a pure theory around deficits and collecting tariffs, et cetera, would possibly improve here. I think the reality is it's all somewhat dollar weaker. And I think the trend on the weaker dollar remains. And it's not necessarily because the rest of the world is going to start selling our currency. And I think some of the fund flows around the dollar, first of all, have been more about maybe global hedging against a weaker dollar. I don't think you've seen an outright sale of U.S. assets and an outright sale of owning the U.S. But I think there has been positioning to at least hedge against that. Now, at some point, I think there will be more of that. But my general view on investing globally and where we have seen outperformance is there have been a handful of important, obvious triggers to getting people's attention. But we're talking about 15 years of underperformance and fund outflows. Exactly. You had five and a half billion of inflow into equity. And I think that's the kind of thing that you're going to continue to see. Mostly because people are underweight.

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