Key Facts
• Trump’s tariff policies boost international stock markets but slow U.S. market growth.
• S&P 500 index rose 7.8% in 2025, while MSCI World Index (excluding U.S.) surged 18%.
• Country-specific stock increases in 2025: Mexico (18%), Canada (12%), Germany (21%), Spain (26%), Brazil (14%), UK (11%).
• U.S. tech and AI-driven stock growth contrasts with undervalued international markets.
• Craig Basinger of Purpose Investments predicts a long-term shift from U.S. to international assets.
• Valuation gap between U.S. and international markets remains historically significant.
• Trump tariffs, effective this month, may accelerate international market growth.
• Reforms in Canada, Europe, and Japan aim to attract investors and boost domestic growth.
• European and Japanese stocks show signs of recovery from prolonged low-growth expectations.
• Bank of America survey: 54% of fund managers favor international stocks for the next 5 years.
• Tariffs disproportionately impact U.S. corporate profits compared to European and Japanese firms.
• Risks remain as U.S. economic struggles could spill over to other markets.
Summary
Trump’s tariff policies are reshaping global stock markets, favoring international equities while slowing U.S. market momentum. In 2025, the S&P 500 index rose 7.8%, significantly lagging the MSCI World Index’s 18% growth. Countries like Spain (26%) and Germany (21%) saw notable stock gains. Historically undervalued international markets are now attracting investors, with experts like Craig Basinger predicting a long-term shift from U.S. to global assets. Tariffs, effective this month, are expected to further boost international markets, supported by reforms in Canada, Europe, and Japan. European and Japanese stocks are recovering from low-growth expectations, with 54% of fund managers favoring international equities over the next five years. However, risks persist as U.S. economic challenges could impact global markets.
