Trump’s Policies Trigger Market Turmoil, Weakening Dollar and Blindsiding Investors

What began as a year poised for American economic dominance under Trump’s low-tax, high-tariff agenda has devolved into market chaos. Sovereign bonds swung violently, the yen surged 9% against the dollar, and emerging markets resurged as havens. The real shock? A collapse in the Bloomberg Dollar Index—its worst annual start since 2005—as Trump’s 'Liberation Day' tariffs ignited fears of a deliberate devaluation to prop up domestic industry.

Investors who bet on inflation-driven Fed hawkishness and dollar strength were left scrambling. The policies shredded consensus trades, from equities to currencies, with recession whispers growing louder. Market confidence now hinges on whether Washington’s trade gambit is strategic brilliance or economic self-sabotage.