0
0 News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/trumps-tariff-shockwaves-rattle-global-markets-as-investors-scramble/
Global markets are reeling from the fallout of US President Donald Trump’s aggressive tariff policies, which have sent currencies tumbling, stock markets plunging, and inflation fears soaring.
Despite clear warnings, many investors remained complacent, only to find themselves caught off guard as the economic consequences of Trump’s trade war began to unfold.
“The writing was on the wall,” said Nigel Green, CEO of deVere Group, a global financial consultancy. “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 as equities and major currencies slumped in response to 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, and the Mexican peso suffered significant losses as trade tensions escalated.
US Treasury yields swung wildly as investors sought refuge in safe-haven assets. Short-term yields spiked, reflecting concerns that inflationary pressures could force the Federal Reserve to maintain or even hike interest rates. At the same time, longer-term bond yields fell, signaling fears of broader economic damage beyond US borders.
“This is a colossal economic gamble,” Green warned. “Trump’s tariffs are impacting every asset class—equities, bonds, commodities. The bet is that tariffs will stoke inflation and force central banks to keep rates high. This is a dangerous game.”
Stock markets in Europe and Asia bore the brunt of the sell-off, with Hong Kong, Japan, South Korea, and Taiwan posting steep losses. Oil prices surged as tariffs on Canada and Mexico raised concerns about disruptions to North America’s energy supply chain, potentially driving up fuel costs for American consumers.
Even cryptocurrencies were not spared. Bitcoin and Ether saw sharp declines, with Ether experiencing its steepest drop in nearly four years before partially recovering.
As investors brace for prolonged volatility, Green urged those who have not yet adjusted their portfolios to act swiftly. “The markets will remain highly reactive in the coming days and weeks,” he said. “Investors must position themselves strategically to mitigate risks and seize opportunities as assets reprice.”
The economic landscape is shifting rapidly, with Canada, Mexico, and China unveiling retaliatory tariffs. Trade-sensitive sectors such as manufacturing, technology, and consumer goods are expected to face significant adjustments as companies reassess supply chains and costs.
“Investors mustn’t repeat the mistake of inaction,” Green concluded. “This is the wake-up call.”
As the trade war intensifies, the global economy stands at a precarious crossroads, with markets bracing for further turbulence and investors scrambling to navigate an increasingly uncertain future.
News Ghana, Latest Updates and Breaking News of Ghana, Roger A. Agana, https://newsghana.com.gh/trumps-tariff-shockwaves-rattle-global-markets-as-investors-scramble/
