After returning to office in January 2025, Donald Trump didn’t waste any time moving markets both locally and globally. As Trump does, he announced via social media in March 2025 that the United States had been “ripped off and abused by every nation in the World, both friend and foe”. He declared his policy action as “Liberation Day”, a plan to “Make America Great Again” through reciprocal trade tariffs even on the United States’ largest trading partners.
After slapping tariffs on over 180 countries, markets were volatile with most global markets falling significantly. Notably, global equity markets sold off across the US, Europe, Asia and even Australia following the announcement.
In the short term, markets priced in slower trade, higher costs, and increased policy uncertainty.
The introduction of 90-day tariff pauses later in the year helped calm markets and reduce immediate downside risks. As uncertainty faded, global equities recovered into year-end, finishing the year on a far stronger footing than where they stood following the initial announcement.
Who knows what Trump has in store for 2026? With the current tensions between the US and Venezuela - it will be interesting to see what the global markets are in for.
