Too soon to relax on Trump tariffs | Australian Markets

Investors shouldn’t get too sanguine about US tariffs-induced volatility in circumstances the place one other spherical of bulletins are being flagged, in accordance to the chief govt of UK-based financial advisory advert investment home, deVere Group, Nigel Green.

Green closed out final week warning that the White House appeared to have reloaded what quantities to “one of the most disruptive economic weapons of recent years”, referring to experiences Trump has confirmed he’ll impose new unilateral tariffs charges witin the subsequent fortnight.

Green stated that whereas markets had adjusted swiftly to the president’s ‘Liberation Day’ bulletins, “risk is back in charge”.

“This is a stark reminder that geopolitics—not earnings, not data—can still set the tone for capital markets,” he stated. “We’re seeing trade policy used again as a blunt-force economic instrument. That has consequences for every asset class.”

He famous that the announcement got here simply as traders had been positioning round indicators of improved US-China dialogue.

“That window of optimism has slammed shut. The US seems prepared to act unilaterally and with out warning, reviving the type of tariff volatility that beforehand roiled international provide chains and distorted capital flows.

“The timing is deliberate,” says Nigel Green. “This isn’t negotiation—it’s escalation. And it forces institutional capital to reprice geopolitical risk across the board.”

Markets responded rapidly. Technology, industrials and autos offered off. The greenback retreated. Gold and Treasuries caught robust inflows. The strikes had been broad, and calculated.

This wasn’t a delayed response. The capital rotation had already begun because the direction of coverage turned clearer.

“Investors are moving fast and with intent,” says Green. “Now it’s about reinforcing positions, not chasing headlines. Exposure needs to be calibrated to a live policy environment, not a stable one.”

The implications go far past trade. This shift reintroduces unpredictability into US financial coverage at a second when international confidence was simply starting to stabilise. The concern isn’t solely the tariffs themselves—however the message they ship about how the world’s largest financial system intends to have interaction with its friends.

Central banks now face extra complexity. The rate-cutting cycle could conflict with supply-side inflation created by tariffs, significantly in commodities, freight, and intermediate items.

“There’s no clean policy response to politically driven inflation,” Green explains. “That’s why this move carries disproportionate weight. It doesn’t just affect prices—it erodes clarity.”