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Global financial markets have given a clear vote of no confidence in President Trump’s economic policy.
The damage it will do is obvious: Costs for companies will rise and hit their earnings.
The consequences will wrinkle throughout the global economy, with economists now raising their expectations for a recession, not just in the US, but all over the world.
Rates latest: FTSE 100 suffers the largest daily decline since Covid
Financial investors gradually have their expectations of Donald Trump the past few months.
The hope that his actions may not match his rhetoric on Wednesday imposed rates imposed on US trading partnersTo generate protectionism to a level that has not been seen more than a century.
Markets would always respond, but they are also struggling with another problem: the lack of certainty when it comes to Trump.
He is a fickle figure and we can only guess his next step. Will he drive back? How far is he willing to negotiate and offer concessions?
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It is massive unknowns who are piled up to uncertainty about how countries will react.
China already has retaliation and Europe has indicated that it will continue.
This will exacerbate the problems for the global economy and undoubtedly send shivers through the markets.
There is still a lot of determined, but if there is one thing that hates markets, it is uncertainty.
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