Investors eye safe havens fearing Trump's 'gunboat diplomacy' could lead to global trade war

President proposed tariffs on steel

Fears of an emerging trade war, sparked by US President Donald Trump's proposed tariffs on steel and aluminium imports, have forced some asset managers to consider how they will protect their portfolios from the "market-shaking" consequences.

Trump is expected to approve a 25% levy on steel and 10% levy on aluminium imports, although a White House spokesperson said on 7 March the tariffs could include "potential carve-outs for Mexico and Canada based on national security, and possibly other countries as well". In response to Trump's proposals, European Union (EU) legislators presented member states with a list of €2.8bn worth of US products, including jeans, bourbon whiskey and motorcycles, for which it could create barriers. The bloc has since appealed to US officials for clarity on how it too can gain exemption from new tar...