US Trade Tariffs and impact on markets

Commenting on the US trade tariffs and the impact on capital markets in the UK, Chris Arcari, Head of Capital Markets, Hymans Robertson says

“Global growth forecasts slipped to 2.5% in March – which is still low, even relative to standards just after the 2008 global financial crisis. While a global recession is still not the base case, the risks to this forecast, and hence corporate earnings, look heavily skewed to the downside following Trump’s “Liberation Day” tariff announcements on 2 April. The scale of the new wave of tariffs has scope to materially reduce global growth over the next few years and will have an even bigger impact on countries whose exports represent a large share of their GDP. Uncertainty over tariffs will weigh on sentiment and it is unclear whether deals will be struck which might lead to the partial or full reversal of tariffs.”