Trump tariffs could trigger stagflation, disrupt global markets: deVere CEO

The CEO of one of the world’s largest independent financial advisory and asset management organizations warns that Donald Trump is reigniting a trade war at precisely the worst possible moment.

The comments from deVere Group boss Nigel Green come as President Donald Trump said Thursday that tariffs of 25% on Mexican and Canadian goods are set to take effect on March 4, while also threatening to impose an additional 10% on Chinese imports on the same date.

Mexico, China and Canada are America’s top three trading partners.

Green notes, “Just as the US economy shows signs of slowing, he is pushing forward with fresh tariffs. The consequences could be devastating.

“The timing is reckless. Inflation, which remains stubbornly high, will almost certainly spike as higher tariffs drive up prices for businesses and consumers.

“Mexico, Canada, and China are America’s top trading partners, meaning these sweeping duties will ripple through every sector. Higher costs on essential goods, from food to electronics to cars, will further squeeze household budgets already under pressure.”

But it’s not just inflation that’s the problem. Economic growth is faltering, and the weight of these tariffs will push the US into the worst scenario of all: stagflation.

“A stagnating economy coupled with rising prices is an economic quagmire that policymakers dread. It limits options, fuels uncertainty, and shakes investor confidence.

“The Federal Reserve may have been preparing to ease rates, but this trade policy shift could force them to reconsider. Higher interest rates on ballooning government debt will further compound the crisis,” notes the deVere CEO.

Elon Musk and Trump’s allies may talk about slashing government spending to offset the damage, “but cost-cutting alone won’t be enough to fix what tariffs will break,” says Nigel Green.

US manufacturers relying on Mexican and Canadian supply chains will be hit hard. Consumers will feel the pain at the checkout.

“Businesses will stall investments amid rising uncertainty. The global response could be just as brutal—retaliatory tariffs from trading partners would hurt American exports and deepen the economic slowdown.”

He continues, “Markets won’t take this lightly. Investors betting on a Trump-driven market surge may need to reconsider their positions. The dollar, already facing pressures from shifting monetary policy, could see increased volatility. Equities, which had been pricing in a more stable economic outlook, may react with sharp corrections.”

Meanwhile, China, Mexico, and Canada are likely to sit idly by. China, in particular, has learned how to mitigate US tariffs through targeted countermeasures, currency adjustments, and strengthening trade ties elsewhere. Mexico and Canada have leverage too.

Retaliatory tariffs could hit American agricultural exports, auto parts, and key industries that rely on North American trade agreements.

For businesses, the uncertainty is crippling. Forward-looking investment becomes riskier, hiring plans get put on hold, and economic momentum weakens.

Global investors will have to reassess their strategies, factoring in the heightened risks to US assets and corporate earnings, suggests deVere.

Consumer sentiment is already fragile, and additional costs on imported goods will only exacerbate financial stress.

Nigel Green concludes, “The combination of sticky inflation, slowing economic activity, and heightened uncertainty is a recipe for stagnation.”