Funds Pulling Out of U.S. Assets Due to Trump, Mercer Warns

Donald Trump’s efforts to reshape global trade and pressure the Federal Reserve into cutting interest rates are driving investors to scale back U.S. exposure, according to Mercer LLC, Richard Henderson reported for Bloomberg News.

U.S. equities have lagged most global peers in 2025 for dollar-based investors. (Photo: Mercer) 

A growing number of Mercer’s 3,900 clients, overseeing a combined $17 trillion, are shifting funds from the U.S. to Europe, Japan and other markets, said Hooman Kaveh, the firm’s global chief investment officer.

Concerns over tariffs, Fed interference, rising deficits and the risk of a weaker dollar are fueling the exodus, he added.

“The start of Trump’s second term has been a trigger for genuine diversification,” Kaveh said. “We’re seeing flows toward diversifying markets, geographies, asset classes, currencies.”

Uncertainty over Trump’s trade wars rattled markets in April, when U.S. stocks and Treasuries slid after his “Liberation Day” announcement. While both later rebounded, U.S. equities have lagged most global peers in 2025 for dollar-based investors.