Last week’s US tariff announcements were much larger than we or the markets had expected. With the US administration seemingly unperturbed by market volatility, the key question is how and when the economic data might prompt a shift towards a more moderate agenda and when does it become an investing opportunity rather than a volatile mess.

A complete picture on how different countries will retaliate to Presidents Trump’s tariff directive has not emerged yet. Retaliation could be merely symbolic, in an attempt to seal a deal, or it could be aggressive. We already see different approaches emerging. China, a significant US trading partner, has hit back with a hefty 34% import duty on US goods. At this stage uncertainty remains extremely high.

Markets, if anything, dislike uncertainty. Periods of market decline often pave the way for eventual recovery and, in some cases, significant growth.