Protectionist Trade Policies and the Downturn in Financial Markets

how the implementation of protectionist trade policies, particularly the imposition of tariffs initiated by former President Trump, is one of the main reasons behind the downturn in the financial markets. These policies represent a significant strategic misstep, as they risk disrupting global supply chains, limiting imports, and ultimately hurting American consumers and businesses. The actions contradict what game theory teaches us about international trade, as they isolate the U.S. economy and invite retaliation, leading to a significant loss of investor confidence and market value estimated at around five trillion dollars in daily losses across U.S. equity markets. While short-term political gains may be achieved through these tariffs, the long-term economic consequences could prove far more damaging.