The peak of policy uncertainty

In this week’s PERSPECTIVES podcast, we look ahead to “Liberation Day” – the term used by President Donald Trump to describe Wednesday, April 2, when he is expected to make a new major announcement on tariffs.

Deepak Puri, our Chief Investment Officer for the Americas, expects this announcement will focus on reciprocal tariffs, designed to match the import tariffs other countries currently place on U.S. goods. He also discusses sectoral tariffs and secondary tariffs and what they could mean for global markets.

Whatever is announced this week, “markets are going to remain on edge", Deepak predicts, adding that “we’re now facing the peak of policy uncertainty with regards to trade and tariffs.” He explains that markets need to establish a baseline cost of tariffs, measuring their economic impact. In the short term, these costs will be double-edged: “One [aspect] will be increasing price pressure for US consumers and the second aspect will be lower growth.”

Finally, it’s an important week from a macro perspective, as we will receive the most recent snapshot of the U.S. labour market and ISM data for both manufacturing and services in the U.S.

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