Before U.S. President Donald Trump announced a 90-day pause on tariffs, he had already urged investors to buy stocks – a move that would typically be considered insider trading. Maurice Bauer confirmed the latter in an interview with our colleagues from RTL Radio.
The Christian Social People’s Party (CSV) MP, who spent 16 years working at the Luxembourg stock exchange, expressed disbelief: “It’s hard to imagine what this man has actually done!”
Trump’s call to invest, made while he was aware of the upcoming tariff freeze, proved beneficial to those who followed his advice. Bauer, also a former law student, said he expects investigations into the president’s actions to follow.
The current volatility in global financial markets is affecting more than just stocks – it’s also hitting bonds, including U.S. Treasuries. Treasuries, which are a form of public debt, are typically seen as a safe haven during periods of uncertainty. But as Maurice Bauer points out, the U.S. government appears to have lost control of the situation. “When markets become unpredictable, investors usually turn to bonds and government debt,” Bauer explains.
But recent developments show a drop not only in stock values but also in demand for treasuries. As demand falls, U.S. national debt continues to rise. According to Bauer, this downward trend is one of the key reasons behind President Trump’s partial tariff pause. The U.S. currently spends around €900 billion annually on debt repayments.
Despite the temporary suspension of some tariffs, the overall tension in the markets remains. Bauer notes that several of Trump’s tariff hikes are still in place – most notably, the 10% general increase, the 25% on steel, aluminum, and car parts, and the 125% rise on Chinese imports.
As for Luxembourg, how hard has its stock market been hit? Bauer points out that, beyond ArcelorMittal, only a limited number of Luxembourgish companies are listed. Still, the market doesn’t operate in isolation. “All markets are connected,” he says. “If the German DAX or the French CAC40 moves, Luxembourg’s market moves too.”
