NASSAU, BAHAMAS — A prominent financial expert and businessman believes that “cooler heads” will eventually prevail in the ongoing tariff war, but warns that volatile U.S. trade actions have already unsettled markets, adding that shaken confidence could pose longer-term risks to economic stability.
Anthony Ferguson, President and Founder of CFAL, made the remarks in the firm’s Global and Local Economic Review for the First Quarter, where he addressed the unexpected scope and impact of tariffs imposed by the Trump administration.
“Even our precious Bahama Islands were tariffed,” Ferguson noted. “What was not expected were the reciprocal tariffs applied to every country, regardless of whether they were an ally of the U.S. or not.”
According to the report, markets initially tanked in reaction to the tariffs, which were implemented with little warning. Though a partial rollback has since been announced—with a temporary 10 percent tariff applied to all countries except China for a 90-day period—Ferguson cautioned that the broader implications remain concerning.
“Businesses will have difficulty making long-term plans when policy can shift overnight,” the report stated. “This lack of confidence will hit economic growth as persons cut back on luxuries in favor of necessities.”
While the report maintains that markets will likely be fine in the long term, it stresses that short-term turbulence is inevitable, particularly for small businesses and consumers grappling with uncertainty.
Ferguson remains optimistic, though cautious: “Overall, we expect that cooler heads will prevail in the tariff war, as some may call it. Markets have gotten through rough periods before, and we do not expect decades of market experience to change overnight.”
CFAL emphasized the importance of staying focused on long-term goals despite current market volatility.
