Donald Trump’s decision to delay sweeping new tariffs on goods from Mexico and Canada may offer a temporary sense of relief, but it does little to resolve the broader uncertainty that continues to grip businesses and markets.
This is the warning from Nigel Green, CEO of global financial advisory organization, deVere Group, as the US President has pulled back from the brink of a trade war with Canada and Mexico, pausing for a month sweeping new tariffs on goods from its two closest economic partners.
He says: “The threat of tariffs remains very much alive, and as long as it does, economic stability remains at risk.
“While we welcome the decision to hold off on imposing these tariffs, the reality is that businesses and investors are still operating under a cloud of uncertainty.
“Tariffs—whether enacted or merely threatened—create unpredictability that global markets loathe.
“Without clarity, businesses cannot plan effectively, supply chains remain vulnerable, and investment decisions are clouded by risk.”
This latest postponement marks the third time in two weeks that the US president has pulled back from the brink of imposing new duties on its closest economic partners. While it underscores that tariffs are being wielded as a negotiating tool, it also raises questions about their effectiveness.
“At some point, continued threats without action risk losing credibility, while persistent instability may damage investor confidence beyond repair,” notes the deVere CEO.
Markets reacted with significant volatility in response to the latest developments, highlighting the fragility of global trade relationships. This uncertainty is compounded by the fact that while Mexico and Canada have been given a reprieve, China remains in the crosshairs, with new tariffs set to take effect on Tuesday.
“Even if some tariffs are avoided in this instance, the underlying threat continues to hang over the global economy. At some stage, either the administration follows through on its threats, or they begin to lose impact entirely—either scenario creates fresh risks for investors.”
The delay in tariffs follows last-minute talks between Trump, Canadian Prime Minister Justin Trudeau, and Mexican President Claudia Sheinbaum, leading to an agreement to temporarily hold off on new duties.
Mexico, in particular, has responded with a commitment to deploy additional troops to its northern border—an indication that tariff threats are being leveraged to extract political, rather than purely economic, concessions.
For global investors, this underscores the necessity of diversification. Trade disruptions have wide-ranging implications, from supply chain constraints and increased costs for manufacturers to heightened inflation risks and currency volatility.
Companies reliant on cross-border commerce remain exposed to sudden policy shifts, and as a result, so do the financial markets that underpin them.
“Investors need to take a long-term approach and ensure portfolios are globally diversified and positioned to withstand the kind of geopolitical and trade turbulence we’re currently witnessing.”
“This situation is far from over,” concludes Nigel Green.
“A temporary delay isn’t the same as a resolution, and without one, the economic uncertainty that markets dislike will persist.”
