If US market drops, it is very hard for others to decouple: Gustavo Medeiros, Ashmore Investment

April 9, 2025

Tariffs of this magnitude would be extremely disruptive to the US and the global economy and bring in a very high risk of an economic recession in the US. If tariffs remain at this magnitude, prices will not decline. So, the initial shock is a stagflationary one. The market was far from pricing in such strong shocks to the economy.

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