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On 12 May, the United States (US) and China established a temporary ‘trade consultation mechanism’, reducing tariffs by 115% for 90 days. While this may ease tensions, high tariffs are still expected to exert upside pressure on US prices, and trade volatility could drag on economic growth in China.

The world as we have known it for the past few decades now looks to have been fundamentally turned on its axis, as indeed have traditional portfolio-management models. In light of this new environment, in which crises – each of which is not necessarily related to the next – appear thick and fast, private banks have to have the right asset management tools to protect their clients’ assets.

Equity markets welcomed Trump’s 90-day tariff truce by rebounding swiftly. However, we are maintaining a wait-and-see stance during this pause, while hedging against potential US dollar weakness by increasing our exposure to gold.

On 9 July, President Trump’s 90-day tariff suspension is set to expire. What will this mean for investors?

Since early November 2024, the gold price has risen from USD 2,600 to highs of above USD 3,500 per ounce. The precious metal received additional support in early February when investors realised that Donald Trump was serious about his tariff programme.

More than six months into her role as region head for North Asia at UBP, Teresa Lee is wasting no time making her mark across the markets of Mainland China, Hong Kong, Taiwan – and even the Philippines.