Investors question American assets, European Central Bank worries it may trigger a chain reaction.

The European Central Bank warned that investors' concerns about risks to US assets have increased following Donald Trump's introduction of tariff policies, which could further impact the global financial system. In its semi-annual Financial Stability Review, the European Central Bank pointed out that after the US announced its trade policy in April, investors shifted from traditional safe-haven assets like the US dollar and US bonds to other assets in a "non-typical shift," which may indicate the arrival of a "fundamental institutional shift." The report released on Wednesday stated that this increases the risk of "more widespread changes in global capital flows." The report stated, "This could have profound implications for the global financial system." This warning highlights the ongoing challenges faced by policymakers caused by the tariff turmoil, even though Trump has already revoked some measures.