It’s still early days, of course, but it seems the so-called Trump Trade is already unraveling, and with it, many of the assumptions that shaped global markets over the past several months.

When Donald Trump stormed back into the political arena, investors bet heavily on a familiar playbook: tax cuts, deregulation, protectionist tariffs, and a booming stock market fueled by aggressive pro-business policies. Instead, Wall Street is witnessing a sharp selloff, the dollar is weakening, and volatility is rising.

The Trump Trade is in full retreat, and markets are struggling to make sense of a new reality.

Perhaps the most striking development is the dollar’s unexpected decline. Typically, tariffs strengthen a currency by reducing trade deficits and encouraging capital inflows. Yet, despite escalating trade tensions and fresh tariffs targeting China, the greenback has failed to rally. Instead, it is slipping, undermined by a combination of factors including growing skepticism about US economic resilience, rising inflationary pressures, and concerns about America’s worsening fiscal position.

This decline does not look like a short-term fluctuation; it signals a deeper shift.........

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