TSL Express Daily News

At SFNet’s recent International Lending Conference in London, Lord Kim Darroch, former UK Ambassador to the United States, shared his analysis of global geopolitical dynamics, highlighting how the volatility driven by Trump’s trade agenda, geopolitical rivalries and shifting global alliances could have profound implications for financial markets, business confidence and global credit conditions. Lord Darroch’s insights focused on heightened credit risk vigilance, the potential for collateral valuation challenges, and new capital deployment opportunities.

A few quotes of note from his speech:

“If tariff wars reignite, global businesses will be forced to rethink their growth priorities, simplify supply chains, and explore alternative markets. This realignment could significantly alter credit demand, collateral structures, and capital deployment strategies across industries.”

“The risk of prolonged tariff wars with China and the EU would reverberate across global supply chains, potentially triggering stagflationary pressures, rising interest rates, and even a global recession. For businesses, this means heightened uncertainty around costs, margins, and financing conditions.”

“The reality Trump has discovered, perhaps reluctantly, is that even as President, you cannot buck the markets. His tariff threats triggered a $2 trillion sell-off across U.S. equities and Treasury markets, which he watches obsessively. This dynamic is critical: financial markets will be the ultimate governor of his trade policies.”

“He  (Trump) is acutely aware of two constituencies he won’t want to harm: blue-collar workers and the American business community. Policies that hurt growth, raise inflation, or damage corporate profitability will face internal pushback.”