Pimco Warns US Markets Mirroring UK and EM After Tariff Shock

US financial assets are at risk of “mirroring dynamics of the UK and emerging markets” as the Trump administration embraces protectionism, says Pacific Investment Management Co.

“Rapid US policy changes pose challenges for investors accustomed to a global financial system anchored in U.S. markets and assets.,” write Marc Seidner and Pramol Dhawan in a paper published Thursday.

In the wake of the White House announcing a barrage of tariffs, the Treasury yield curve has steepened, led by long-dated yields rising sharply, while the US dollar and Wall Street share prices have also weakened. That combination suggests investors are demanding a ...