Despite months of warning, analysts and investors were still caught flat-footed by the chaotic rollout of a host of sky-high tariffs. Trump's protectionist tariffs and onshoring were expected to be inflationary and thus liable to keep monetary policy relatively tight. That, in turn, would support foreign inflows into the U.S. and strengthen the dollar, or so the consensus view held. But the rally never materialized, in large part because many global investors baulked at Trump's controversial policy agenda and trimmed their dollar exposure. For now, investors seem to be getting used to Trump's new economic playbook.

Source: The Telegraph December 29, 2025 15:10 UTC