In April 2025, President Donald Trump stunned global markets and diplomatic circles by announcing sweeping tariffs ranging from 10% to nearly 100% on imports from virtually all countries. Dubbed “Liberation Day” tariffs by the U.S. administration, the move triggered an immediate and intense backlash. Politicians, media pundits, and economists around the world denounced the action as reckless, economically unsound, and potentially disastrous for the global economy.

But such a one-dimensional, knee-jerk reaction may itself be dangerously shortsighted. From a risk management perspective, it is precisely in moments like this, when established norms are shaken, that we must resist emotional reactions and instead engage in cool-headed analysis. We need to pause, reflect, and ask deeper questions: