Donald Trump’s latest tariff bombshell has shaken global markets and it’s raising serious questions. Was this chaos just bad policy or something more calculated? It might sound like a conspiracy theory, but the facts tell a story worth paying attention to.

In just one week, the U.S. slapped a jaw-dropping 104 per cent tariff on Chinese imports, sending markets into a tailspin. Then, just as quickly, Trump announced a 90-day pause for most nations, but not China. In fact, he hiked China’s tariff again, this time to 125 per cent.

What was the result of Trump’s pause on tariffs?

The result? Massive volatility. Markets tanked, then soared with the S&P 500 posting one of its biggest single-day gains since World War II. For the average investor, it was a rollercoaster. But for those positioned to profit from sudden swings? It was a goldmine.

So, was this chaos accidental or engineered?

History shows that dramatic policy shifts often benefit those with foresight or insider access. Trump’s unpredictable approach to tariffs isn’t just policymaking, it’s market-making. And for those in the know, volatility like this is the perfect playground.

What does this backflip on tariffs mean for investors?

It’s a brutal reminder that relying on global stability is a risk. In this environment, the old “buy and hold” playbook looks dangerously outdated. Instead, the smart money is going where the action is by adopting active strategies gained from a quality education that can flex with fast-moving markets.

Because in a world where headlines move billions and policy is inseparable from profit, one rule stands above all: adapt or be left behind.

What are the best and worst-performing sectors this week?

The best-performing sectors included Information Technology, up 6.64 per cent, followed by Communication Services, up 3.10 per cent and Consumer Discretionary, up 2.45 per cent. The worst-performing sectors included Health Care, down 4.27 per cent, followed by Energy, down 4.04 per cent and Real Estate, down 0.72 per cent.

The best performing stocks in the ASX top 100 included Coles Group, up 8.19 per cent, followed by Lynas Rare Earths, up 5.79 per cent and Woolworths Group, up 5.35 per cent. The worst-performing stocks included Mineral Resources, down 20.94 per cent, followed by Pilbara Minerals, down 18.99 per cent, and Whitehaven Coal, down 15.54 per cent.

What's next for the Australian stock market?

Last week was nothing short of a rollercoaster with classic Trump-era theatrics in full swing. It all began with reciprocal tariffs that quickly spiralled into a tit-for-tat exchange: China fired back, the U.S. responded again, and just when markets thought they’d caught their breath, another round from China prompted a final, headline-grabbing 125 per cent tariff from the U.S. If this were a drama series, we’re still in the pilot episode—so grab your popcorn.

The market reaction was just as dramatic. Monday saw the sharpest selloff since the early days of COVID, sending shockwaves through investors and sparking widespread capitulation. But just as panic took hold, Thursday flipped the script. A surprise announcement from Trump pausing the tariffs ignited a powerful rally, with the market surging more than 4.5 per cent. While it didn’t quite match the 9.9 per cent rebound seen in the U.S., it was a strong comeback. By Friday’s close, the market had clawed its way to finish slightly up, an outcome few would’ve predicted earlier in the week.

From a technical standpoint, the 7,300-level held firm, acting as a critical support zone backed by a long-term momentum line. However, the buyers couldn’t hold above the 8,000-point ceiling, which now stands as the next major hurdle in confirming the strength of this rally. Until then, volatility is likely to persist, with the 7,800-level serving as a near-term support to watch. The question remains—are buyers showing conviction, or simply taking advantage of a brief window?

Information technology and communication services led the bounce, but last week wasn’t about sectors—it was about sentiment. Markets were reacting to a deeper, more concerning threat: the risk of a global economic slowdown, fuelled by spiralling trade tensions. In times like these, all eyes stay glued to U.S. policy, because the old saying still holds true: when America sneezes, the rest of the world catches a cold.

For now, good luck and good trading.

Dale Gillham is the Chief Analyst at Wealth Within and the international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of the bestselling and award-winning book Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in all good bookstores and online.