Trump and tariffs unnerve equity, bond markets

Trump and tariffs dominate global headlines and keep world leaders engaged.

- T N C RAJAGOPALAN

Europe is rattled by Trump's moves to take the side of Russia in the war with Ukraine and ask for scarce minerals in exchange for the aid given to Ukraine to defend against an invader.

Smaller countries are becoming more anxious about what Trump might demand from them, given his utter disregard for global rules, including fundamental principles such as respect for the sovereignty and territorial integrity of other nations. These developments have heightened uncertainties, making the equity and bond markets nervous and slowing down investments in productive assets.

Many analysts fear that the world is heading not only toward an economic slowdown but also toward a "might is right" approach by some leaders—reminiscent of the attitudes that pushed the world toward a disastrous war nine decades ago.