Markets Face Volatility Amid Trump’s Chaotic Trade Policies and Potential 50% Drop from Tariffs

Global financial markets are experiencing heightened volatility and unpredictable price movements driven by shifting trade policies under the Trump administration. Market participants are struggling to anticipate the direction of stocks, bonds, and currencies due to the administration's inconsistent and abrupt policy changes. The ongoing trade war has created daily market dislocations and gyrations, with investors uncertain about the long-term impact. Despite the turbulence, markets have remained relatively stable, partly because many investors doubt that the tariffs will be sustained. However, there is concern that if the tariffs are taken seriously, markets could face a substantial downturn, potentially declining by 50% within the next 12 to 18 months. The Trump administration's negotiation style, described as chaotic, continues to add to market unpredictability and volatility.