How ‘weaponised trade’ could lead to ‘weaponised capital’

Financial Times - 04/04
As international structures that promoted free trade are unwound, there is a rising risk of a return to capital controls

The writer is co-founder and chief investment strategist at Absolute Strategy Research

Donald Trump has weaponised trade with his “liberation day” tariffs. Up until the announcement, investors had fixated on how the tariff details will impact the stocks in their portfolios. But it is clear the impact will be much broader and consequential. And there is one key risk investors need to appreciate — the potential for tariffs lead to a reduction in capital flows.

The first risk is that capital is reallocated away from the US, towards non-U...
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