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Investing.com -- Nigel Green, CEO of deVere Group, a global financial advisory firm, has warned that President Donald Trump’s trade policy is leading the US into a crisis. This comes after Trump’s recent announcement that he would impose a 200% tariff on all wines and other alcoholic products from EU countries if the bloc did not remove its tariff on whiskey. This followed a threat on Wednesday to retaliate against Europe’s response to Washington’s 25% tariffs on steel and aluminum imports.
Trade imbalances have been a key focus for Trump, who has imposed aggressive levies on Mexico, China and Canada during his second term. Green suggests that this tariff-driven economic strategy is pushing the US into a deep crisis, damaging market stability, investor confidence and causing businesses to incur unexpected costs.
Green added that the unpredictability of US trade policy under Trump has led corporations to prepare for a future where the US is not a reliable trading partner. Some of these changes, he believes, will be permanent. Companies have already experienced higher input costs, consumers are feeling price hikes, and manufacturing has adjusted supply lines, often looking beyond the US for stability.
Statistics show a significant drop in imports from China, but instead of bringing production back to the US, companies are shifting to other low-cost alternatives like Vietnam, India, and Mexico. Market volatility, driven by these trade disputes, is creating ripple effects across every asset class, including emerging markets, commodities, and currencies.
The dollar, traditionally a safe-haven asset, is starting to show signs of unease as trade tensions spill into broader economic concerns, from consumer confidence to corporate earnings. A weaker dollar can have advantages for some sectors, but in this case, it’s happening because global investors are questioning where US policy is heading next.
Green concluded that global trade flows are adjusting to a world where the US is no longer the dominant player it once was. This shift is happening in real time, is measurable, and will be increasingly difficult to reverse.
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