Financial Whirlwind: Trump's Economic Playbook Shakes Global Markets

2025 was a volatile year for financial markets as President Trump's economic strategy diverged from traditional expectations. His tariffs and protectionist measures reshaped global trade, leading to a fluctuating U.S. dollar and unexpected market reactions, while the Federal Reserve faced pressure to alter interest rates.

2025 marked an unpredictable year in the financial arena, with President Donald Trump's unconventional economic strategies rewriting the rules of global trade. His affection for tariffs aimed to bolster American manufacturing but resulted in unforeseen market reactions, leaving Wall Street analysts scrambling.

Trump's aggressive tariff policies initiated a trade war that sent ripples through global markets. The U.S. tariff rate soared to 17%, and the dollar experienced an unprecedented slump, contrary to expectations of its strengthening. Meanwhile, the Chinese yuan rose, defying predictions of retaliatory depreciation.

Amidst this upheaval, the Federal Reserve enacted unexpected interest rate cuts, raising questions about its independence under political influence. As investors navigate this transformed financial landscape, global attention turns to whether the tumult will persist into 2026.

(With inputs from agencies.)