A former economic policy advisor recently highlighted an interesting tension in current trade policy: while the latest round of U.S. trade deal negotiations has delivered some tangible improvements on paper, the underlying threat of escalating tariffs continues to cast a shadow over market confidence.

The arithmetic seems straightforward—stronger negotiating positions should equal better outcomes. Yet anyone watching the markets knows it's more nuanced. Tariffs ripple through supply chains, hit corporate margins, and ultimately affect risk appetite across asset classes. For traders and investors building their portfolios, this policy friction creates the kind of macro headwinds worth paying attention to. When economic advisors start hedging their optimism this way, it usually signals deeper uncertainty about what comes next.