April 2025 was a dramatic month for global financial markets, with policy shocks and volatility echoing crisis times. President Trump’s new tariffs triggered a rapid and severe market sell-off, shaking the confidence and sending all major asset classes lower in a rare “triple sell-off” more commonly seen in emerging markets. While a temporary pause in tariffs helped markets rebound, the episode highlighted the sensitivity of sentiment to policy uncertainty and geopolitical tensions.

The administration’s tariff strategy represents a high-stakes gamble that short-term pain will yield long-term economic strength. While proponents envision a multi-phase evolution toward American industrial renaissance, critics warn of inflationary pressures, global retaliation, and potential stagflation. The mid-month pause on most tariffs (except those on China) provided some relief to markets, but significant uncertainty remains as trading partners have already implemented retaliatory measures.

We also highlight the resilience of low volatility strategies and examine what lies ahead for rates and risk assets as markets digest these historic policy shifts. Looking ahead, the coming months will test whether April’s bold policy experiments can deliver lasting benefits or whether risks will dominate the narrative for the rest of the year.