‘Pure tariff chaos.’ The world—and markets—react to Trump’s trade shift.
Subscribe to enjoy similar stories. President Donald Trump’s new 15% global tariff is causing uncertainty and confusion among investors and international lawmakers alike. Trump announced the move Sunday, up from a 10% rate, after the Supreme Court struck down levies the administration imposed under the International Emergency Economic Powers Act Friday.
Stock futures pointed lower early Monday, reversing Friday’s rally, while haven assets gold and silver rose. Investors don’t quite know what to make of it all. Well, the combined effect of the ruling and the new levies is actually a reduction in the increase of the effective tariff rate since the beginning of 2025—to 9 percentage points, from 10, Goldman Sachs analysts estimated in a note Sunday.
The changes in policy mean the bank’s estimates for the tariff impact on inflation and growth are “little changed." They said the bulk of the inflationary effect passed through to consumers has already happened, expecting just a further 0.1% impact to core PCE prices in 2026. But it’s the uncertainty that’s currently unaccounted for—the new 15% levy can only stay in place for 150 days. And other countries around the world are also scrambling to protect existing trade agreements with the U.S.
The European Commission demanded “full clarity" from the U.S. and said it expects the Trump administration to honor the trade deal it agreed with the European Union in August last year. “A deal is a deal," the commission said in a statement Sunday.
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