According to Julia Khandoshko, CEO of European broker Mind Money, new U.S. trade tariffs are changing expectations around the world, affecting risk sentiment and inflation outlooks while creating a new level of worry for investors.
Khandoshko told Kitco News Wednesday afternoon that Trump has “opened a new Pandora’s box with no good exits” with these tariffs. In actuality, a tariff war is a confrontation in which everyone loses and no one wins. Global insecurity has significantly worsened as a result of all of this, and America’s standing as a reliable state is deteriorating daily.
“The legal and political risks have significantly increased and have only gotten worse.”
Despite his assurance that they will be increased to 15%, U.S. President Donald Trump’s new worldwide tariffs went into force on Tuesday at 10% after the Supreme Court decided on Friday that he lacked the authority to implement many of the country-specific duties he proposed starting last April.
In light of this, Khandoshko claimed that the market is being compelled to adjust its expectations. “This regime will be even longer due to the new tariffs,” she stated. “As a result of rising import prices, inflation expectations are rising, and shortage risks are increasing.” In the end, nothing positive.
However, she described the current economic impact as mild. “The bullish period in the stock market is not coming to an end, but there is a significant decline in risk appetite,” she stated. “The treasuries are still relevant, but they appear to be more volatile.”
“In the end, this tariff story is not a game changer,” she continued. “It’s a slight change to the same game’s new rules.”
Regarding Europe, Khandoshko stated that “the lack of ambition” is the primary issue she observes in the area.
“Strategic autonomy and a cohesive foreign policy are also lacking,” she stated. “With no active stance in such trade disputes, the region, which was once the leader in GDP, is now vulnerable to external decisions.”
