Tariffs, trade and uncertainty: A perspective on US equity markets 

THESE past days have been challenging. Markets have been volatile as investors digest the size and scope of US President Donald Trump’s new tariffs, which substantially exceeded most base-case expectations.

Volatility is likely to continue as businesses absorb both the immediate and longer-term implications of this massive attempt to reorganise the global trade landscape.

While markets’ response to the tariffs has been swift, it is important to acknowledge that there are still many unknowns. Whether and what tariffs could be reduced or negotiated remain to be defined. We need to see responses from global trading partners.