Banking CEOs Advise Calm Amid Global Market Sell-Off, Calling It 'The New Normal'

• Goldman Sachs International co-CEO Anthony Gutman warned that current tariff threats represent 'the new normal' for market volatility, creating complexity for business leaders making investment decisions
• European markets face a 10% U.S. tariff starting Feb. 1, rising to 25% by June 1, following Trump's proposed 200% levy on European wine and champagne
• Banking executives expressed more concern about indirect economic effects—such as altered trade patterns, delayed investments, and supply chain disruptions—than direct tariff impacts

Summary: Banking CEOs Urge Calm as Markets Tumble on Trump Tariff Threats

European and global markets experienced significant sell-offs Tuesday following President Trump's threats of new tariffs, prompting banking CEOs to call for calm and characterize the volatility as "the new normal."

Market Performance

• Pan-European Stoxx 600 fell 1.2% in morning trading
• U.S. markets declined sharply: S&P 500 down 1.5%, Nasdaq down 1.6%, falling nearly 2%
• European banking sector hit hardest: Stoxx 600 Banks Index dropped 1.4%, financial services down 1.3%
• Asian markets also closed in negative territory

Key Tariff Developments

Trump floated a potential 200% levy on European wine and champagne, adding to existing plans for a 10% tariff on European countries starting February 1, escalating to 25% by June 1.

Executive Perspectives

Commerzbank CEO Bettina Orlopp emphasized staying calm, referencing lessons from last year's "Liberation Day" tariff event.

Goldman Sachs International Co-CEO Anthony Gutman warned that current volatility represents "the new normal," creating complexity for business leaders making strategic decisions despite optimism on European markets.

ING CEO Steven Van Rijswijk noted that while Europe weathered previous tariff turmoil, escalating trade policies as geopolitical weapons serve as a "wake-up call." He expressed concern about indirect impacts—altered trade patterns, relocated production, and delayed investments—rather than direct tariff effects.

Market Implications

Banking leaders acknowledge that geopolitical tensions, trade disputes, and supply chain challenges threaten economic stability, with long-term policy certainty critical for economies, societies, and financial institutions.