Trade uncertainty is far from dissipating. Trump's new tariff threats are like a storm warning.

Investors initially began to feel more optimistic that the trade war with Donald Trump was starting to simmer down, especially after the preliminary agreements reached with countries like the UK. They believed that the US president was starting to roll back the highest tariffs in nearly a century. However, Trump's latest round of tariff threats quickly dispelled their optimism. On Friday, Trump threatened to impose a 50% tariff on the European Union, and warned that if companies like Apple and Samsung don't move their production to the US, smartphones could face a 25% tariff. This starkly reminded people of Trump's unpredictable decisions and preferences for controversial policies. Trump's longtime ally, Steve Bannon, said that the president's reaction was partly due to his belief that this week's G7 Finance Ministers' Meeting made little progress on trade issues, especially considering the relatively quick agreement reached with the UK. Bannon warned that other countries without progress in negotiations should be concerned, calling it a "storm warning."