Investment expert Bob Janjuah told CNBC markets will be impacted as much by Donald Trump’s decision to impose tough tariffs on metals imports as they were by Brexit.
Mr Janjuah said: “I think the market kind of got its head around it and decided it didn’t matter that much and looked at other stuff like the physical boost and said that’s the driver.
“But actually, I think this is a little different. I think this is potentially, it’s not the same, but it’s the kind of US’ Brexit moment in many ways.
“And whatever you think of Brexit, it’s going to have a bit of an impact for a bit of a while, across the board.
“And I think for the US, the world’s core consumer, this is not just a US issue, this is a global issue.”
Of the President’s decision, the investment advisor said that this was part of his campaign pledge to protect American industries.
Mr Janjuah said: “Mr Trump is kind of doing what he said he was going to do in the run-up to being elected. The market, I think, forgot that.
“But if the market is already concerned about inflation and the Federal Reserve, trade wars, one of the takeaways from that is a bigger risk of inflationary low growth.”
The US President announced hefty duties of 25 percent on steel and 10 percent on aluminium, despite protests by many in his party and some of his top economic advisors.
The levies form part of a package of measures which Mr Trump insists are for “national security” reasons.
But he also says they will revive America’s “dead” metal industries, punish Chinese overproduction and reduce the US’s massive trade deficit with Beijing.
Exemptions for the duties have already been drafted for neighbouring Mexico and Canada, and it was announced this week Australia has also avoided being hit by pledging support for a new “security agreement”.
Though it is not yet clear whether the sizeable levies will apply to the European Union and spark a trade war.
But according to sources inside talks between US and European trade officials, the EU could avoid the tariffs if the bloc demonstrates willingness to support Mr Trump in his fight against China and cheap metals flooding the US market.