UBS/Ermotti: US Tariff Policies and Geopolitical Crises Could Shake Markets by 2025

According to Sergio Ermotti, CEO of UBS Group AG, the potential move by the U.S. government to increase tariffs on its trading partners, combined with global conflicts, could heighten risks in financial markets next year.

In an interview with Bloomberg Television during Abu Dhabi Finance Week, Ermotti stated, "The acceleration of geopolitical events and the escalation on the macroeconomic front—tariffs, protectionism—are certainly something to watch. The situation remains very uncertain, and we will see a lot of volatility in the markets."

Ermotti advised his clients to be well-diversified in the current environment and noted that he does not see a strong appetite for risk at the moment. "It has both relieved and surprised me to see that all these geopolitical events have not triggered any ripple effect or consequences in financial markets."