Overview

• President Trump's 145% tariff on Chinese imports and sweeping trade policies have triggered significant market volatility, with major U.S. indices posting double-digit declines in 2025.
• Foreign investors, who owned 17% of U.S. equities in 2024, are now reconsidering their holdings, citing weakened corporate margins, supply chain disruptions, and reduced market stability.
• PIMCO warns that U.S. protectionism is eroding the safe-haven status of the dollar and Treasuries, suggesting a shift toward foreign government bonds as attractive alternatives.
• Financial advisors recommend measured portfolio rebalancing to increase international exposure but caution against abrupt divestment from U.S. assets to avoid locking in losses.
• Experts highlight the potential end of U.S. 'exceptionalism' in global markets, with some pointing to a broader transition toward a more multipolar financial system.