If the US tariffs are fully enacted and sustained, these measures have the potential to significantly disrupt global trade and slow economic growth. In addition, inflation is set to accelerate in the US, reigniting fears of stagflation. Policymakers elsewhere will be determined to support their domestic economies and to mitigate the external shocks created by the escalating “trade war”.

The massive infrastructure investment program previously announced by Germany and the European Union’s EUR 800 billion rearmament plan look like timely support measures. However, the ramifications of higher defense spending are complex and the long-term effects are anything but certain – making the paradigm shift difficult for investors to navigate.

The publication also takes a closer look at infrastructure investments. It discusses the evolution and the advantages of this asset class and provides insights into how LGT Capital Partners invests in four secular growth segments on behalf of the LGT Endowment.