Trump’s first 100 days rock global markets – lasting damage?
Donald Trump’s first 100 days back in the White House have shaken global financial markets with a force no US president has unleashed before – and the consequences are already rewriting the global economic order, warns the CEO of one of the world’s largest independent financial advisory firms.
Nigel Green, chief executive of deVere Group, says: “The speed, scale, and shock value of the Trump administration’s early moves have stunned investors and hammered traditional safe havens.
“In just over three months, he has unleashed a new era of uncertainty, volatility, and rapid transformation that’s reshaping global markets in real time.
“Since Trump’s inauguration in January, his administration has moved aggressively to overhaul domestic institutions and international alliances.
“Tariffs have been slapped on strategic imports, sparking furious retaliation from major economies. The effective US tariff rate now stands at its highest level in over a century.”
Meanwhile, the newly created Department of Government Efficiency, led by billionaire Elon Musk, has overseen a dramatic gutting of the US civil service, mass contract cancellations, and the hollowing out of regulatory agencies.
As a result, the dollar has tumbled to a three-year low against major trading partners. Once the undisputed cornerstone of the global financial system, the greenback is now facing a crisis of confidence.
“Investors are beginning to question whether the US dollar can maintain its hegemonic status,” says Nigel Green.
“If Washington continues to weaponize its economic policies and undermine its own institutions, the shift away from the dollar could accelerate.”
Global trust in the dollar has long rested on the rule of law, geopolitical stability, and consistent economic leadership from the US. But as Trump dismantles alliances and governs by executive fiat, central banks and sovereign wealth funds are gradually diversifying their reserves.
“We’re already seeing early signs of de-dollarisation,” warns the deVere CEO.
“More trade is being conducted in yuan, euros, and even gold. If this trend gains traction, it will have profound implications for US borrowing costs, capital markets, and the global economy.”
The fallout is already visible. Equity markets have been battered.
“The S&P 500 has fallen about 8% since Trump’s second inauguration – the worst early-term performance for any US president in nearly half a century.
“At the same time, investors seeking refuge have piled into gold, pushing it to multi-year highs, and into emerging market sovereign debt, despite rising default risks.
“The short-term outlook is more volatility, further dollar weakness, and continued pressure on multinational corporations that rely on global supply chains,” he explains.
“The medium-term threat is even greater: a hard fragmentation of global trade relationships and permanent shifts in investment flows.”
At the same time, America’s role as the linchpin of the global economic system is under serious threat. Trump’s policies have eroded confidence in US leadership, pushed long-time allies to explore alternative alliances, and emboldened rival powers to challenge the post-war order that Washington built.
“Other major economies are now moving to reduce their exposure to the dollar-centric system. They no longer see it as safe, neutral, or reliable,” says Nigel Green.
“Once the credibility underpinning a reserve currency begins to erode, it rarely returns.”
The Department of Government Efficiency, or Doge, has only deepened concerns. While designed to streamline Washington bureaucracy, the Doge initiative has triggered widespread confusion.
Layoffs have gutted key government departments, paralyzing decision-making and weakening regulatory frameworks that underpin critical industries.
Elon Musk’s appointment as head of Doge initially excited parts of the market, but his rapidly falling approval ratings have since weighed heavily on Tesla shares and broader tech sentiment.
“When a single unelected official wields such unchecked power over the federal apparatus, it destabilizes both investor confidence and diplomatic alliances,” warns the deVere Group chief executive.
Consumer sentiment in the US has also dropped sharply, even as inflation edges lower. Trump’s tough talk on taming price growth helped propel him back to office, but the global trade chaos he has triggered is feeding into fresh recession fears among American households.
He continues: “The danger now is a feedback loop: falling consumer confidence, sliding markets, weaker growth, and mounting political instability. Trump has set the global economy on a high-stakes, high-volatility path.
Looking ahead, deVere predicts that Trump’s policies could fundamentally alter global capital markets in the long term. As trade alliances splinter and political risk premiums rise, investors will be forced to reassess the primacy of US assets — and the global reliance on the dollar itself.
In addition, new financial centres in Asia and Europe could draw an increasing share of global investment.
He concludes: “Trump’s first 100 days have been a turning point. “We urge investors to remain globally diversified, rethink exposure to US-centric assets, and position for a world where economic nationalism and political unpredictability dominate. Ignoring this seismic shift would be perilous.”