Trump’s tariffs gamble: Markets were warned, yet complacency reigned
Markets were warned by Trump. Yet, despite clear signals, investors remained complacent—until now.
The shockwaves of US President Donald Trump’s aggressive tariff policies are rattling global markets, sending currencies lower, stock markets tumbling, and igniting fresh fears of inflation and economic instability.
“The writing was on the wall,” says Nigel Green, CEO of global financial giant deVere Group.
“This was entirely foreseeable. Yet, too many market participants buried their heads in the sand, convinced that the worst wouldn’t materialize. Now, the consequences are here, and investors need to act—fast.”
The dollar surged while equities and major currencies slumped following Trump’s decision to impose tariffs on imports from Canada, Mexico, and China.
“The Canadian dollar hit its weakest level in over two decades, the euro extended its decline after Trump doubled down on tariffs on EU goods, and the Mexican peso suffered losses as trade tensions escalated,” notes the deVere CEO.
US Treasury yields swung as investors flocked to safe-haven assets. A spike in short-term yields underscored growing concerns that inflationary pressures will intensify, keeping US interest rates higher for longer. Meanwhile, safe-haven bets drove down yields on longer-term bonds, signaling fears of economic damage beyond US borders.
Nigel Green continues: “This is a colossal economic gamble.
“Trump’s tariffs are having an impact across asset classes, from equities to bonds to commodities. The bet is that tariffs will stoke inflation and force central banks to maintain or even hike rates. This is a dangerous game.
“Stock markets, particularly in Europe and Asia, suffered significant declines, with investors scrambling to reposition their portfolios. Asian markets bore the brunt, as Hong Kong, Japan, South Korea, and Taiwan posted steep losses. Meanwhile, oil prices surged amid concerns that tariffs on Canada and Mexico could disrupt North America’s energy supply chain, pushing up fuel costs for American consumers.”
Adding to the turbulence, cryptocurrencies were not spared. Bitcoin and Ether saw sharp declines, with the latter experiencing its steepest loss in nearly four years before partially recovering.
Investors are now bracing for a prolonged period of volatility.
Nigel Green asserts that those who have not yet adjusted their portfolios should consider doing so immediately.
“The markets will remain highly reactive in the coming days and weeks. Investors must position themselves strategically to mitigate risks and seize opportunities as assets reprice.”
With Canadian and Mexican leaders unveiling retaliatory tariffs and China vowing countermeasures, the economic landscape is shifting rapidly. Trade-sensitive sectors—including manufacturing, technology, and consumer goods—are expected to face sharp adjustments as companies reassess supply chains and costs.
“Investors mustn’t repeat the mistake of inaction,” concludes the deVere CEO. “This is the wake-up call.”