The tariff storm is far from over, unfortunately. President Trump and some of his key officials used the weekend to dig in their heels on his ‘Liberation day’ tariffs, and equity markets are falling heavily again today. Falls of this speed and scale can become self-reinforcing. They can also lead to unanticipated consequences. The biggest risk is that the market dislocation more generally leads to a rise in credit risks that either causes something in the financial market plumbing to freeze or something in the system to “break”. This has increased in recent days, but is still relatively low.