Trump’s Congress address sparks fears of a full-blown trade war

The global economy could now be on the brink of “its most severe disruption since the 2007-2008 financial crisis, besides the pandemic,” warns the CEO of global financial advisory giant, deVere Group.

The comments from Nigel Green of deVere Group comes after in his highly-anticipated address to Congress, US President Donald Trump doubled down on the most aggressive tariff policies seen since the 1940s in some respects, delivering a speech that, despite its rhetoric of economic strength, is set to cause concern through financial markets.

He argued that “tariffs are not just about protecting American jobs, they’re about protecting the soul of our country,” but admitted they would cause “disturbance”.

“Tariffs are about making America rich again, and making America great again,” he said. “And it’s happening, and it will happen rather quickly.”

“There will be a little disturbance, but we’re okay with that,” he continued.

In response, deVere Group’s Nigel Green says: “This is no longer just a warning sign. This is seemingly turning into an all-out trade war.

“The immediate market reaction to Trump’s sweeping tariffs on Canada and Mexico was stark, with declines across major indices, reflecting investor fears of a prolonged and damaging standoff. 

“The true extent of the fallout, however, has yet to be fully realized, especially as wider reciprocal tariffs are set to be rolled on April 2, according to Trump in his address.”

Donald Trump said “countless” nations charge the US “tremendously higher tariffs than we charge them”. The president said China’s average tariff on US products were twice what America charges Beijing.

He added the average South Korean tariff was four times higher than what the US imposes on Seoul. 

The deVere CEO comments: “History has proven that protectionist policies of this magnitude don’t end in prosperity, but in economic isolation, slower growth, and inflationary pressures that ultimately hit consumers and businesses hardest.”

“Tariffs are not a win for American workers or businesses—they’re taxes.” 

Companies across industries, from manufacturing to tech, are expected to bear the brunt of these costs, leading to price hikes, squeezed margins, and reduced competitiveness. 

“Trump’s assertion that these measures will strengthen the US economy is, at best, disingenuous. 

“The reality is that higher costs on imported goods will ripple through supply chains, forcing firms to either absorb the added expense or pass it onto consumers.” Either way, the result is likely economic pain.

“The global repercussions cannot be overstated. Tariffs on key trading partners set off a chain reaction—retaliatory measures, shifting supply chains, capital flight, and a decline in investor confidence,” notes Nigel Green.

Emerging markets, already grappling with tighter financial conditions, will be particularly vulnerable. 

The world is entering a period of heightened economic uncertainty, and with central banks already stretched in their policy responses, there is no easy fix on the horizon.

Despite Trump’s assurances of an economic renewal, his trade war stance directly undermines long-term stability. 

“The lessons of past crises should serve as a stark reminder: economic nationalism and aggressive tariffs do not fuel growth; they suffocate it. The financial landscape is shifting rapidly, and businesses and investors must now brace for a turbulent period ahead.”

What happens next will depend on how global markets, policymakers, and businesses react in the coming weeks. 

“It can be reasonably assumed that the fallout from Trump’s trade war is only just beginning. Households, businesses and investors need to buckle up,” concludes Nigel Green.