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Donald Trump’s unpredictable trade policies seem to have eroded the United States’ appeal to foreign investors, who apparently no longer regard the country as a safe haven for their money.
The White House’s sudden reversal on the so-called reciprocal tariffs for some categories of goods “add more to uncertainty and a sense of paralysis for real economy businesses,” says Marc Ostwald, chief economist at ADM Investor Services International.
“For all that some may argue that this to-ing and fro-ing is / was all part of the ‘plan’ of the new US administration for maximum disruption, it is still de facto very disorderly, and makes the US appear to be a very unreliable partner in political and business terms,” Sway remarks.
“In broad terms, many investors will now be looking for more ‘reliable’ partners, who will act in ‘good faith’,” he predicts. Sway also warns that “a new, though lower, tariff” on the exempted goods will likely be announced soon, thus making it just a temporary reprieve.
