The market has started to get over the initial shock created by Donald Trump’s announcement of punishing reciprocal tariffs on 2 April and regained some equilibrium.

As we write, an important proviso in the current times, the Trump administration has, by its standards, been a touch quieter, particularly when it comes to tariffs and its views on the direction pursued by the Federal Reserve.

This is allowing the market to focus on earnings and corporate outlooks – Google-owner Alphabet (GOOG:NASDAQ) provided some positive headlines in this regard with its better-than-expected quarterly figures and relatively bullish tone.

However, as Ian Conway explains in this week’s News section the impact of what has already been announced is only beginning to make itself felt in the real economy through supply shortages. 

As with the disruption caused by the pandemic, it may not be easy to turn things back on if and when trade deals are agreed.

Elsewhere in the digital magazine, I look at the investment trusts which have performed best since Donald Trump held up his chart in the Rose Garden and Ian Conway examines what the lasting impact of a tumultuous period for US assets might be.

Our resident technology expert Steven Frazer takes a good look at Tesla (TSLA:NASDAQ) in the wake of its disappointing quarterly numbers and asks what might be required to get the company on track.

Meanwhile, Martin Gamble previews the upcoming first-quarter numbers and annual shareholder meeting at Berkshire Hathaway (BRK.B:NYSE) – having amassed a hefty cash pile is Warren Buffett ready to put it to use after the sell-off in US stocks so far in 2025?

Why haven’t European stocks done better since Liberation Day? As Bank of America’s European equity strategy team note: ‘President Trump’s historical shift in US trade policy, in combination with elevated uncertainty around US monetary and fiscal policy, has led to a reassessment of where to deploy capital.

‘European assets are an obvious alternative in this new flight to safety, especially given Germany’s shift towards fiscal spending.’ They note that during meetings in New York investors were looking for increased fund flows into Europe and for that to flatter the region’s relative performance.

‘Indeed, European-focused equity funds have just experienced the largest weekly inflow in eight years,’ they add. However, by their reckoning European outperformance versus global equities (of which US equities comprise over 70% in market cap terms) stands at just 1% since 2 April.

The answer underscores the truth of the old maxim that it’s better to travel than arrive. ‘European equities outperformed global equities by 15% between late last year and mid-March, already encapsulating the underlying European economic improvement as well as a boost from German fiscal stimulus,’ they conclude.

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