Trump's Trade Policies: A Looming Concern for Markets

Donald Trump's proposed 'Trump Reciprocal Trade Act' intends to impose significant costs on the European Union for not purchasing enough American products. With potential tariffs on the horizon, concerns are rising among investors about a new trade war impacting growth and inflation.

This anxiety is echoed by companies like Columbia Sportswear and Airbus, which are bracing for higher tariffs. Critics, including Democrats, argue that Trump’s trade strategies have adversely affected blue-collar workers.

Additionally, a recent UBS survey indicates that over 90% of CFOs expect increased tariffs if Trump returns to power, prompting many firms, especially in China, to rethink their strategies and explore alternative markets to mitigate risks.