President-elect Donald Trump isn't wasting time making waves. This week, he took aim at Panama, threatening to reclaim control of the Panama Canal unless the country slashes what he called “excessive rates” at the critical trade chokepoint. Trump suggested Chinese interests might be influencing canal operations, a claim Panama's President Jose Raul Mulino fiercely denied, calling the canal's neutrality non-negotiable. For global shipping players, this kind of rhetoric is a flashing warning sign—disruption here could throw supply chains into chaos.
Meanwhile, Trump doubled down on tariffs, demanding the European Union ramp up its purchases of American oil and gas or face a trade war. His pitch? The U.S. is already Europe's biggest liquefied natural gas (LNG) supplier, and now he wants more. U.S. energy giants like ExxonMobil (XOM, Financial) and Chevron (CVX, Financial) are eyeing potential gains from expanded demand. Economists warn that new tariffs could reignite global inflation worries—something investors have been desperate to put in the rearview mirror.
So what's the play here? Trump's hardline stance on trade and territorial disputes is creating ripple effects across markets, and investors should buckle up for volatility. The stakes are high: potential disruptions to global trade routes, inflationary pressures, and a reshaped energy market could reshape portfolios. For now, the smart money is watching for policy follow-through and positioning for the fallout in energy and logistics sectors.
