Trump’s Tariffs: Business Leaders Reflect on Ripple Effects

Sumeet Gill’s take on US tariff policies as President Trump’s return to office | Business Frontier

“The US tariff maneuvers have introduced a distinctive pattern into global markets – brief relief followed by renewed uncertainty. President Trump’s 90-day suspension of tariffs for most nations provides a temporary respite, but the exclusion of China and elevation of its tariff rate to 145% signals a targeted approach that continues to reshape global trade dynamics.

What’s striking here isn’t just the economic impact, but the conflicting market psychology at play. We’re witnessing both relief rallies and defensive positioning simultaneously – investors hedging their optimism with traditional safe havens like gold and Swiss francs.

For Middle Eastern economies, these developments create a nuanced challenge. Though not directly targeted, our region faces potential ripple effects through global energy demand fluctuations and investment flows that could influence regional economic stability.

In conversations with our clients, we’re emphasizing strategic patience rather than reactionary portfolio adjustments. The sophisticated investors are currently focusing on structural positions that can withstand policy oscillations rather than attempting to predict each tariff announcement. This includes strategic commodity exposure, balanced currency hedging, and carefully selected fixed income instruments that can provide both yield and stability. At this stage, the distinction between market noise and genuine economic shifts becomes increasingly valuable. The former requires patience; the latter demands thoughtful adaptation.”