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Hedge-fund manager Larry Hite literally wrote the book when it comes to trading – The Rule: How I Beat the Odds in the Markets and in Life . He broke winning down to two iron-cast rules: The first was: “If you don’t bet, you can’t win.” The second: “If you lose all your chips, you can’t bet.
” President Donald Trump has gone all in, but all bets may soon be off, as the market calls his bluff. Yet neither he, nor any of the billionaire “broligarchy” who have been cheering him on, will lose all their chips, no matter where the wheel stops. The rest of the world may not be so lucky.
But so far Mr Trump has been contemptuous of anyone who has questioned the tariff wall. Dismissing the dire warnings of JP Morgan Chase CEO Jamie Dimon, who said it could have lasting negative consequences, or fund manager Bill Ackman, who said it could cause an “economic nuclear winter”, won’t be as easy. A Reuters journalist sits in front of screens in London as he monitors global trading activity following US president Donald Trump's tariff announcement.
Photo: Reuters Today's News in 90 seconds - 8th April 2025 Mr Ackman, who endorsed the US president during his election campaign, appealed to Mr Trump to pause and renegotiate trade deals. With markets in freefall, the international reverberations from “Liberation Day” are still challenging political leaders to frame proportionate responses. Their task has not been made any easier by the fact that the grounds for imposing the levies were entirely spurious.
Mr Trump’s critics have long accused him of operating through “a reality distortion field”. His baseless claims about the “exploitation and abuse of America” are not helping his case. China has hit back strongly, and while Europe has said its preference is to prioritise negotiations over retaliation, it is now primed for targeted countermeasures.
European Commission president Ursula von der Leyen said the EU stood ready to negotiate a “zero-for-zero” tariff pact for industrial goods. However, hawks within the bloc believe a more aggressive response is needed. French trade minister Laurent Saint-Martin said nothing should be off the table, including the EU’s Anti-Coercion Instrument (ACI).
This would clear the way for the EU to hit US services. Ireland would be in the direct line of fire, given the presence of so many US tech giants. This was all avoidable had anyone in Washington considered the destructive chain reaction.
But Mr Trump has shown himself to be tone-deaf when it comes to geopolitics. Europe now needs to hold its nerve. This meltdown was created in Washington.
The collapsing markets, threats to jobs and possible recession are all direct results of Mr Trump’s decision to go for the jugular. He has caused the world’s most powerful economy to wobble. As Ms von der Leyen said, Europe must now focus on the 83pc of the global economy outside the US.
There’s good reason why chainsaws and sledgehammers have no place in the diplomatic tool box. As former US envoy, David Friedman, put it: “The direct use of force is such a poor solution to any problem: it is generally employed only by small children and large nations.”.
