Global trade tensions are intensifying as the new U.S. administration's tariff policies ripple through international markets. The UK economy faces mounting pressures—rising import costs threaten business margins, consumer spending could contract, and investment confidence wavers. Economists are signaling recession risk as the tariff wave creates uncertainty across key sectors. This matters beyond traditional finance: when major economies struggle with contraction fears, capital flows shift unpredictably. Some investors rotate toward digital assets as hedges against currency instability and monetary policy shifts. Others retreat to cash. The point? Macro shocks don't stay contained in one region—they reshape how markets price risk across all asset classes. Keep monitoring trade developments and central bank responses; they'll set the tone for market direction in the months ahead.