Markets expected to be unfazed by Trump’s Zelenskyy outburst, but more tariff talk causes anxiety

US President Donald Trump’s extraordinary tirade against his Ukrainian counterpart has so far done little to spook global markets, but tariff headaches are intensifying. President Trump berated Ukrainian President Volodymyr Zelenskyy in the Oval Office early on Saturday, scuppering hopes that a peace deal to end Russia’s invasion of Ukraine would be imminent. The S&P 500, which is a key US stock index and barometer for global markets including Australia’s, was in the red briefly after the fiery exchange between Presidents Trump and Zelenskyy, before finishing Friday’s trade strongly — up 1.6 per cent. European stock futures were also relatively unscathed in aftermarket trading. Interactive Brokers senior Economist Jose Torres said the market is becoming used to Mr Trump’s outbursts and traders are quick to fill any dips caused by the US President’s rhetoric. “Right now, the bar is pretty high when it comes to trying to startle markets,” Mr Torres said. “We’ve had wild swings on a number of fronts, including geopolitical incidents like this one. “People are seeing any broad-based drawdown as a reason to come in and buy the dips.” While the prospect of a prolonged Eastern European war is yet to batter global markets this year, Mr Trump’s tariffs are wreaking havoc and the pain could get worse. The extensive suite of trade levies will shake up a number of industries ranging from aluminium and steel, to tequila and computer chips. Mr Trump over the weekend also ordered a probe into the “national security harm” posed by timber imports, particularly focusing on whether China and Canada are artificially depressing the price of goods like kitchen cabinetry. Meanwhile, crude oil posted its biggest monthly loss in February since September as the escalating tariff threats reduce investors’ risk appetite, strengthen the US dollar and cloud the outlook for energy demand. West Texas Intermediate futures are below $US70 a barrel and wrapped up the month 3.8 per cent lower. Mr Trump recently affirmed the March 4 start of levies on imports from Canada and Mexico, which are the biggest suppliers of foreign oil to the US. He also threatened to double an existing tariff on imports from China. China has vowed it would slap similar import restrictions on the US, but the Asian country’s vice premier He Lifeng took a conciliatory tone over the weekend, stoking hopes a last-minute trade deal could be thrashed out. “China and the US have extensive common interests and broad space for cooperation,” Mr Lifeng said at a dinner hosted by the American Chamber of Commerce in China, according to the Xinhua News Agency.