History could be repeating itself as the latest wave of tariffs from the Trump administration disrupts global trade, reshapes supply chains, and sends investors scrambling to reassess their strategies

 

 

This is the warning from Nigel Green, CEO of deVere Group, one of the world’s largest independent financial advisory and asset management organizations, as shares in Europe and Asia have fallen after US President Donald Trump announced tariffs on Canada, Mexico and China, and said tariffs on the EU would “definitely happen.”

 

 

The parallels with past protectionist policies are striking.

 

 

The Smoot-Hawley Tariff Act of 1930, introduced to shield American industries during the Great Depression, had the opposite effect. 

 

 

Retaliatory measures followed, slashing US exports by more than 60% and worsening the global downturn. 

 

 

Today, similar risks loom large as major economies respond to Washington’s aggressive trade stance.

 

 

Nigel Green comments: “The lessons from history are clear: Protectionist policies rarely deliver the intended benefits. 

 

 

“The Smoot-Hawley tariffs worsened the Great Depression by stifling global trade, and today’s tariffs risk triggering the same destructive cycle. 

 

 

“Rising costs, inflationary pressures, and disrupted supply chains will impact businesses and consumers alike. 

 

 

“But history also shows that volatility breeds opportunity. Investors who understand these cycles can position themselves strategically.”

 

 

Stock markets in North America, Europe, and Asia have already reacted, with significant sell-offs in trade-sensitive sectors. 

 

 

Tech firms, automakers, and consumer goods companies are adjusting to new cost pressures. 

 

 

Meanwhile, the bond market reflects growing unease, as short-term yields climb while longer-term rates decline—a signal of concerns about economic expansion.

 

 

The deVere CEO continues: “The impact is unfolding across asset classes. Equity markets are under pressure, safe-haven investments are seeing inflows, and currency markets are adjusting. 

 

 

“The last time we saw such widespread tariff impositions, global trade suffered a historic contraction. Investors who recognize the broader implications will be best placed to protect and grow their portfolios.”

 

 

Commodities have also felt the impact. Oil prices have surged due to fears of trade disruptions involving North American energy producers. 

 

 

Meanwhile, agricultural markets are bracing for turbulence as China and the European Union respond with tariffs of their own, targeting US exports.

 

 

Cryptocurrencies have not escaped the turmoil. Digital assets, often viewed as an alternative during periods of economic instability, have experienced sharp volatility. Bitcoin and Ethereum saw significant declines before stabilizing, reflecting broader market jitters.

 

 

With Canada and Mexico announcing countermeasures and China pledging additional actions, uncertainty is set to persist. 

 

 

Trade-dependent industries must now reevaluate sourcing strategies, while investors need to assess how prolonged tensions could reshape global capital flows.

 

 

“This is a pivotal moment for investors,” concludes Nigel Green. 

 

 

“Those who hesitate risk being caught on the wrong side of market movements. But for those who learn from past disruptions and take decisive action, this period of volatility could present some of the best opportunities in years.”

 

Markets remain on edge despite Trump’s tariff pause

 

Donald Trump’s decision to delay sweeping new tariffs on goods from Mexico and Canada may offer a temporary sense of relief, but it does little to resolve the broader uncertainty that continues to grip businesses and markets. 

 

 

This is the warning from Nigel Green, CEO of global financial advisory organization, deVere Group, as the US President has pulled back from the brink of a trade war with Canada and Mexico, pausing for a month sweeping new tariffs on goods from its two closest economic partners.

 

 

He says: “The threat of tariffs remains very much alive, and as long as it does, economic stability remains at risk.

 

 

“While we welcome the decision to hold off on imposing these tariffs, the reality is that businesses and investors are still operating under a cloud of uncertainty.

 

 

“Tariffs—whether enacted or merely threatened—create unpredictability that global markets loathe. 

 

 

“Without clarity, businesses cannot plan effectively, supply chains remain vulnerable, and investment decisions are clouded by risk.”

 

 

This latest postponement marks the third time in two weeks that the US president has pulled back from the brink of imposing new duties on its closest economic partners. While it underscores that tariffs are being wielded as a negotiating tool, it also raises questions about their effectiveness. 

 

 

“At some point, continued threats without action risk losing credibility, while persistent instability may damage investor confidence beyond repair,” notes the deVere CEO.

 

 

Markets reacted with significant volatility in response to the latest developments, highlighting the fragility of global trade relationships. This uncertainty is compounded by the fact that while Mexico and Canada have been given a temporary reprieve, China remains in the crosshairs, with new tariffs set to take effect on Tuesday.

 

 

“Even if some tariffs are avoided in this instance, the underlying threat continues to hang over the global economy. At some stage, either the administration follows through on its threats, or they begin to lose impact entirely—either scenario creates fresh risks for investors.”

 

 

The delay in tariffs follows last-minute talks between Trump, Canadian Prime Minister Justin Trudeau, and Mexican President Claudia Sheinbaum, leading to an agreement to temporarily hold off on new duties. 

 

 

Mexico, in particular, has responded with a commitment to deploy additional troops to its northern border—an indication that tariff threats are being leveraged to extract political, rather than purely economic, concessions.

 

 

For global investors, this underscores the necessity of diversification. Trade disruptions have wide-ranging implications, from supply chain constraints and increased costs for manufacturers to heightened inflation risks and currency volatility. 

 

 

Companies reliant on cross-border commerce remain exposed to sudden policy shifts, and as a result, so do the financial markets that underpin them.

 

 

“Investors need to take a long-term approach and ensure portfolios are globally diversified and positioned to withstand the kind of geopolitical and trade turbulence we’re currently witnessing.”

 

 

“This situation is far from over,” concludes Nigel Green. 

 

 

 

 





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