Tariffs, tensions and turbulence – it’s not business as usual

IT IS not business as usual for countries, businesses and investors – not since US President Donald Trump’s announcement of a raft of baseline and reciprocal tariffs on “Liberation Day” unleashed tensions and turbulence globally.

Tariffs have upended long-standing trade relations among major trading nations, sending financial markets into turmoil from the tit-for-tat, on-again off-again nature of tariff announcements, and the recent exclusions by the US on imports of China-made smartphones and consumer electronics announced last Friday (Apr 11).

With almost daily developments, investors are justifiably spooked by how the proposed tariffs would weigh on economic growth, corporate earnings and the US dollar, while elevating inflationary risks and prices of safe-haven assets.