4 April 2025, 10:18 | Updated: 4 April 2025, 10:26

By David Buik

President Trump left the world in no doubt that tariffs were on the way.

However, having the likes of experienced Wall Street moguls such as Steve Bessant and Howard Lutnick in his cabinet, who have access to the best economists, let alone the Fed, these financial luminaries would have been left in doubt that the implementation of tariffs would leave global trade hanging over a vortex of despair.

They will have been told in words of one syllable that such draconian global tariffs would never be accepted by knowledgeable international investors, especially those on Wall Street, which are of a most unforgiving nature.

It did not take long for the market to realise that tariffs of this magnitude are inflationary. They leave the consumer in a parlour state, with higher prices to contend with. The appetite of the consumer will inevitably contract. Unemployment will head north and a global recession is almost inevitable.

Markets hate uncertainty and today they have it in spades. Good and bad news they handle with aplomb. Unfortunately, there are too many imponderables. The market has no idea whether these are Trump’s opening shots across the bows. How long will it take before negotiations start? How much retaliation can the US expect from its main counterparties?

The uncertainty is acute. It took until just after 5.00pm EST last Wednesday before the futures market got to work taking the S&P and the NASDAQ down 2.5% and 3% respectively.

Today, investors vented their spleen and ruthlessly sold almost anything that moved. It was metaphorical carnage! Risk appetite disappeared in a heartbeat. At the close the S&P was down 4.84% and the NASDAQ 5.97%.

Just look at the quality of company that received no........

© LBC