Global Economic Concerns Rise Over Trump's Tariffs

Elliott Investment Management L.P. has issued a stark warning to investors about the potential global repercussions of the tariffs imposed by United States President Donald Trump. According to a report by the Financial Times on Thursday, the firm highlighted the risk of "enormous damage" worldwide due to these policies.

Potential Consequences for the US Economy

The analysis shared with shareholders in late April, before the US announced a temporary halt in mutual tariffs with China, suggested that the Trump administration's approach could lead to a "capital flight" and a significant devaluation of the dollar and US assets.

Long-Term Negotiations and Retaliation Expected

Elliott also pointed out that the tariffs are likely to initiate a complex and prolonged negotiation process, accompanied by retaliatory measures from affected countries. This scenario underscores the heightened uncertainty in global trade relations.