Trump Tariffs Shake Global Markets: BlackRock and Wall Street Warn of Prolonged Uncertainty

Market Volatility Rises After New U.S. Tariff Announcements

Global stock markets remain unstable after U.S. President Donald Trump announced a sweeping set of new tariffs. Analysts at BlackRock, the world’s largest asset manager, expect continued volatility in the coming months.

They believe these trade moves may have long-lasting effects on both economic growth and investor confidence.

BlackRock: Lowering Risk Exposure and Shortening Investment Horizon

A Strategic Shift in Response to Uncertainty

In a recent note to clients, BlackRock strategists led by Jean Boivin announced a shift in their investment approach. They are now focusing on a shorter tactical horizon of three months due to rising risks.

They’ve also reduced exposure to U.S. and Chinese equities while increasing holdings in short-term U.S. Treasury bonds—a safer investment option during turbulent times.

> “A shorter tactical horizon means giving more weight to our early view that risk assets could stay under near-term pressure until uncertainty starts to dissipate,” BlackRock noted.

VIX Fear Gauge Surges to COVID-Era Levels

Stock Market on a Rollercoaster

Following Trump’s tariff announcement, U.S. stocks saw a wild ride. While the Dow Jones Industrial Average and S&P 500 ended slightly lower, the Nasdaq closed with a modest 0.1% gain.

Still, the broader market sentiment remains fearful. The VIX—known as Wall Street’s “fear gauge”—spiked to levels not seen since the March 2020 COVID-19 crash.

Investors Brace for Long-Term Impact of Trump’s Tariffs

Historic Levies: 10% Minimum, Up to 50% on Some Imports

Trump’s tariff policy includes a base 10% levy on all U.S. imports, with some goods facing duties of up to 50%. This aggressive move has spooked global markets and may potentially harm U.S. economic growth, analysts warn.

> “Policy uncertainty may weigh on growth and stocks in the near term,” BlackRock said.

“The longer elevated uncertainty persists, the more damage it can do.”

Top Wall Street Leaders Issue Cautionary Warnings

Jamie Dimon and Larry Fink Express Deep Concerns

J.P. Morgan CEO Jamie Dimon warned that the long-term effects of tariffs could accumulate over time, becoming increasingly difficult to reverse.

Meanwhile, BlackRock CEO Larry Fink shared a bleak economic outlook during a talk at the Economic Club of New York.

> “Most CEOs I talk to would say we are probably in a recession right now,” Fink stated.
“The U.S. economy is weakening as we speak.”

Fink also said that the stock market might still fall another 20%, although he believes the long-term prospects for the U.S. remain strong.

> “This is more of a buying opportunity in the long run,” he added.

“But that doesn’t mean the market can’t drop further in the short term.”

Global Reactions: 50 Countries Seek Clarification on Tariffs

Trade Negotiations May Be on the Horizon

U.S. Trade Representative Jamieson Greer is expected to testify before the Senate Finance Committee, revealing that nearly 50 countries have contacted the U.S. to discuss the new tariff rules.

Nations such as Argentina, Vietnam, and Israel have even indicated they may lower their own tariffs and trade barriers in response.

This signals that Trump’s strategy might be used both as a negotiating tool and a long-term policy shift. On Monday, Trump himself said that “both can be true,” when asked if the tariffs were permanent or just leverage.

Conclusion: A Cloud of Uncertainty Lingers Over Markets

The recent tariff announcement has sent shockwaves across global financial markets. With major firms like BlackRock adjusting their strategies and CEOs warning of recession risks, investors are right to be cautious.

Until there is more clarity on U.S. trade policy, volatility is expected to persist. While some see long-term opportunities, the short-term path remains uncertain.