Donald Trump is cementing tariffs as a cornerstone of his presidency, with his latest move to impose 25% duties on all steel and aluminum imports marking a major escalation.
“Struggling to fund tax cuts, he is aggressively using tariffs as a revenue grab, warns Nigel Green, CEO of global financial advisory deVere Group.
“The reintroduction of aggressive trade barriers is now an irreversible reality of Trump’s presidency. Investors must wake up to the fact that tariffs are no longer solely a bargaining chip—they are a permanent, destabilizing force in the global economy.”
Trump, speaking en route to the NFL Super Bowl, confirmed that additional reciprocal tariffs would follow within days, targeting all trade partners and matching each nation’s levies on US goods. This all but guarantees heightened trade tensions and intensifies global economic uncertainty.
“The administration is desperately hunting for cash,” Green warns. “Trump’s tax cuts were colossal but lacked funding. The deficit is spiraling, and with no fiscal cushion, the White House is seizing tariffs as a revenue weapon.”
This fuels concerns raised in deVere’s previous warning about “a fullon bond market tantrum.”
“The intensifying trade war threatens to trigger a sharp spike in yields as investors demand greater risk compensation. A surge in borrowing costs could hammer equities and send shockwaves through financial markets.
History has shown that protectionist policies of this magnitude come at a cost. When Trump imposed tariffs in his first term, supply chains were disrupted, corporate earnings took a hit, and retaliatory measures from trading partners led to further economic strain. This time, the stakes are even higher, given that global markets are already contending with inflationary pressures and monetary policy uncertainty.
“The timing of these tariffs is calculated,” Green asserts. “Trump likely anticipates short-term economic pain, setting the stage for himself to play savior later. It’s a deliberate strategy—engineer a crisis, then ride in as the solution.”
The pattern appears set: a self-inflicted shock to exert leverage and then a dramatic intervention to claim credit for resolving the fallout.
For investors, the consequences are clear: extreme volatility is now inevitable. Markets will be thrown into a whirlwind of erratic policy shifts, triggering violent swings across stocks, currencies, and bonds. The risk of a broader global slowdown is rising, as businesses delay investments amid uncertainty, and consumer sentiment weakens.
Currency markets are already reacting. The dollar’s trajectory is in question, as protectionist measures historically create distortions in exchange rates. Emerging markets, which are highly sensitive to trade policy shifts, are particularly vulnerable.
Nigel Green underscores that investors must not underestimate the risks ahead. “We are entering a period where political unpredictability will directly impact market movements. Trump’s tariffs are just the beginning—this administration will continue weaponizing trade, making it a high-stakes game for investors.”
Mitigating risks and seizing opportunities his environment demands decisive action.
“Investors must act now. Trump’s policies are igniting turmoil, and complacency is no longer an option. Those who fail to reposition their portfolios accordingly will pay the price. Active management, diversification, and a global approach are critical for optimal outcomes,” he concludes.