U.S. bond firm PIMCO said on Tuesday that waning business and consumer confidence under President Donald Trump’s policies is eroding the edge U.S. capital markets held over the rest of the world, strengthening the case for investors to diversify globally.
Trump is set to unveil “reciprocal tariffs,” aligning U.S. duties with those of other nations on April 2, a move that could deepen a market downturn caused by his economic policies that has already seen U.S. stocks post their most dismal three-month stretch since 2022.
“With both business and consumer confidence declining, the U.S. economic and financial-market exceptionalism of recent years could be fading,” PIMCO said in a report written by Tiffany Wilding, an economist, and Andrew Balls, chief investment officer for global fixed income.
“With the U.S. signaling a pullback from some traditional functions … long-held assumptions about the U.S. as a reliable…
