It is interesting to note that this tariff threat does not seem as impactful as before. When the us president started his tariff sabre rattling in his second term, it spooked markets very quickly and almost no one was immune to taking a hit.
Of course the usual safe haven assets like precious metals would continue their record setting ascent, that momentum has largely been going for a few years now, especially for gold. But normal stocks don't seem to panic and nosedive now, especially in foreign markets. I would like to think that the world has learned to cope with all the tariff nonsense and has built better bonds with one another, away from the usa. It might also come down to the fact that the markets are bored of mr. Trunp constantly using tariffs and that it becomes a case of crying wolf.
The constant bluster by the president that the imposed tariffs are paid by external parties are feeble, with americans are footing the bill and the commonfolk being most affected. These willy nilly tariff threats only serve to gradually weaken the bargaining position of the states, all while pushing friends and foes alike to be more adventurous and seek new ties for trade and commerce (look at EU taking another step forward in their mercosur deal).
The tariff button will lose its effectiveness with every press or brnadishing by trump, especially with everyone learning to diversify their reliance, all at the expense of usa's influence on the world. It looks more and more like trump is running the agenda of a foreign adversary rather than truly trying to "make america great again".
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