Trump's Shifting Tariff Policies Spark Market Risks
(MENAFN) U.S. Leader Donald Trump's erratic remarks and unpredictable moves regarding trade tariffs have significantly heightened uncertainty and instability in global financial markets.
His most recent decision related to the European Union has added another layer of unpredictability. Initially, Trump had threatened to enforce a steep 50 percent tariff on EU imports starting June 1.
However, after a phone conversation with European Commission President Ursula von der Leyen, he unexpectedly postponed the measure until July 9.
Previously, tensions had slightly eased when the United States and China agreed on May 12 to a 90-day suspension and reduction of tariffs. Although the overall tariffs were decreased, they remain in effect, keeping the door open for potential trade disputes to re-emerge in the future.
As the international economy continues to grapple with persistent ambiguities affecting markets worldwide, the anticipated transition in leadership at the U.S. Federal Reserve next year is also prompting investors to reassess their strategies and hedge against potential disruptions.
Uzeyir Dogan, the deputy general manager of Istanbul-based A1 Capital, explained to a news agency that instability in the global economy has worsened since Trump began his second term in January.
He noted that market fluctuations are likely to persist for an extended period.
“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.”
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