Market Volatility Expected to Rise as Trump’s Trade Policies Take Center Stage

Following Donald Trump's election as the 47th President of the United States, financial markets are poised for increased volatility as investors assess the potential impact of his campaign promises. Rong Ren Goh, portfolio manager at Singapore's East Asia Investments, noted that this volatility could present trading opportunities.A primary concern is the uncertainty surrounding the implementation of Trump's proposed policies, particularly his aggressive trade agenda. Trump has pledged to impose universal tariffs of at least 10% on foreign goods, with specific tariffs as high as 60% on Chinese imports. These measures aim to protect American jobs and industries by incentivizing domestic production and reducing reliance on foreign goods.However, such policies could have significant implications for global trade dynamics and economic growth. The ease with which tariffs can be enacted through executive orders makes them a focal point for market participants. As a result, investors are closely monitoring developments in trade policy, anticipating potential shifts that could affect various sectors and international markets.In this context, market participants should remain vigilant and consider the broader economic implications of forthcoming policy decisions. Staying informed about policy developments and their potential impact on different industries will be crucial for navigating the anticipated market fluctuations.