25% tariffs are enough to hurt risk appetite UBS "Defensive Three Shields" strategy layout of the stock market

According to the Zhitong Finance APP, the international bank UBS recently released a research report stating that the institution has become more cautious about the outlook for American consumers and the economy as a whole. They also predict that the "risk appetite" in the financial markets may face significant pressure, mainly due to the recent announcement by the Trump administration of a wide-ranging 25% tariff that will be implemented in August, further suppressing consumer spending. The tariff-induced inflation rebound and the long-term maintenance of high interest rates by the Federal Reserve due to potential tariff pressure will also combine to suppress consumer spending. At the same time, UBS emphasizes that global consumer finance microdata shows an increase in loan delinquency rates, a weakening willingness of consumers to spend, reflecting a tightening credit environment and increasing pressure on household balance sheets, leading to rising potential credit risks.