Trump’s Erratic Tariff Policies Spark Global Financial Risks
(MENAFN) Financial markets are grappling with heightened risks and volatility following U.S. President Donald Trump’s erratic tariff policies, most recently demonstrated by his sudden shift on EU import tariffs. Initially threatening a steep 50% tariff on European Union goods starting June 1, Trump abruptly postponed the decision to July 9 after a discussion with European Commission President Ursula von der Leyen.
Despite a temporary easing of U.S.-China trade tensions due to a 90-day tariff suspension and partial rollback on May 12, tariffs remain in place at reduced levels. This leaves the door open for fresh trade disputes as global economic uncertainty persists.
Adding to market unease, an upcoming leadership change at the U.S. Federal Reserve next year is prompting investors to rethink their strategies amid volatile conditions.
Uzeyir Dogan, deputy general manager at Istanbul’s A1 Capital, told a news agency that since Trump’s second term began in January, challenges in global markets have worsened, with ongoing volatility expected to continue.
“Before the 90-day tariff pause expires, Trump’s tariff rhetoric towards the EU raised concerns,” he said. “While we reach the end of the 90-day tariff pause, uncertainties will remain high and some countries may start being concerned over new tariffs, even though China and the EU remain the primary focus.”
Dogan pointed out that despite a slight dip over recent weeks, the World Uncertainty Index has recently hit multi-year highs and is likely to climb again following Trump’s latest remarks—an indicator of further market instability.
He warned that permanent tariffs risk slowing global economic growth, with developing nations set to suffer the most.
On a more positive note for Türkiye, Dogan noted the U.S. has kept tariffs on Turkish goods low, which could boost the country’s export potential. Still, the broader global growth slowdown is expected to impact all economies to varying degrees.
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