The United States is increasingly looking like an emerging market rather than a developed economy, according to Stephane Boujnah, CEO of Euronext, Europe’s leading stock exchange operator. Speaking in an interview on France Inter radio, Boujnah highlighted the profound uncertainty and volatility gripping US financial markets following the introduction of sweeping tariffs under President Donald Trump’s administration.
“An atmosphere of fear permeates everywhere,” Boujnah said, describing the US as “hardly recognizable” compared to its former status as a stable and powerful nation sharing values and institutions akin to Europe. He characterized the current period as a “transitional phase” marked by investor anxiety and confusion over unpredictable policy decisions.
Since Trump took office in January, the US has imposed tariffs starting at 10% on all imports, with some targeted rates soaring up to 50%, aimed at reviving America’s industrial base after decades of trade liberalization. This protectionist approach is typically associated with emerging markets seeking to shield nascent industries during development, not with a global economic superpower.
Boujnah noted that these tariffs have triggered a significant reallocation of global capital, with investors moving funds out of the US and back into Europe. This shift has coincided with a drop in oil prices and long-term interest rates, offering some relief amid the turbulence.
European equities showed signs of recovery on Tuesday, bouncing back from 14-month lows after several days of heavy selling. However, investors remain cautious, especially in light of the European Commission’s recent proposal to impose retaliatory tariffs of 25% on a range of American goods.
The evolving scenario underscores how US policy shifts are reshaping global markets, challenging long-held perceptions of America’s economic stability and forcing investors to navigate an increasingly uncertain landscape.