By Josh Gilbert, Market Analyst at eToro
Dubai, UAE – April 07, 2025; Many investors have likely felt a sense of unease checking their portfolios over the past week. Whether investing for 12 months or 12 years, seeing portfolios in the red evokes the same concern. Historical precedent shows that U.S. President Donald Trump is no stranger to market disruption—and his latest tariffs are proving no exception.
Josh Gilbert, Market Analyst at eToro, commented: “Trump is looking to strong-arm nations and it’s quite clearly having a severe impact on global markets. However, it’s said that over 50 nations have already looked to try to negotiate deals with the White House, which could be a key driver of market movement this week if deals are struck and Trump rolls back on some of his tariffs. However, Trump’s message that no policy changes are planned to address the current sell-off, shows that we could see further downside ahead this week.”
Gilbert added that heightened volatility is likely to remain a persistent theme: “Volatility is going to stay. Trump’s last trade war came in waves. Each escalation triggered a sharp sell-off and surge in volatility, and each truce or trade deal sparked relief rallies. In this scenario, though, we’re seeing Trump pick a fight with every nation—more than initially expected. That’s having a ripple effect globally, ramping up recession fears and knocking earnings expectations, which combined are sending stocks lower.”
With the world’s two largest economies clashing, global markets are bracing for further turbulence. “Right now, the two largest economies are going head to head, and the blows in this economic fight are landing on the rest of the world,” Gilbert said. “For investors, it’s going to be about cutting through the news, filtering through the market reaction, and finding the opportunities that will appear in this market.”
As the situation unfolds, investors are urged to stay cautious yet alert to potential entry points that may emerge from the volatility.
