Global Markets Brace for Trump's Impending Tariff Announcement
Global markets are on edge awaiting President Trump's tariff announcement on April 2, with investors fearing aggressive measures that could exacerbate economic uncertainty and risks of stagflation.
Published on April 1, 2025
On March 31, financial markets were already showing signs of tension as investors prepared for a potentially aggressive shift in U.S. trade policy. Markets are closely watching reports of a surge in FX options trading, particularly in trade-sensitive currencies such as the euro and the Canadian dollar, as hedge funds and asset managers brace for any unexpected moves by the Trump administration.
Analysts note that the anticipated tariff announcement, scheduled for April 2, could mark a significant departure from decades-old trade practices. Reports from various agencies, including details about reciprocal tariffs and potential impacts in countries like the UK, have added to the growing uncertainty. With the economy already softening and inflation remaining elevated, there are rising concerns over the emergence of a stagflation scenario if the new measures prove too aggressive.