Almost eight in 10 institutional investors are rejigging portfolios through tactical tweaks and strategic shifts as they brace for heightened turbulence triggered by U.S. trade policy, new research shows.

A study from Sydney-based research firm CoreData Research, which surveyed 154 global institutional investors in Q2, found 77% are implementing either tactical or strategic changes or a combination of both in response to President Trump’s trade policies. A higher proportion of European investors (86%) have made tactical or longer-term strategic shifts, reflecting a more pessimistic stance on U.S. markets. Indeed, two-thirds (65%) of European respondents are bearish on U.S. equity markets over the next three months compared to half of U.S. (49%) and APAC (50%) respondents.

Among investors making tactical adjustments, more than half (56%) have reduced exposure to U.S. assets, with this proportion rising to nearly two-thirds (63%) of institutions in Europe. And 49% have trimmed exposure to trade-sensitive assets, rising to 56% of APAC respondents. Other tactical changes made by global investors include rotating from growth to value stocks and/or defensive sectors (41%), increasing cash allocations (40%) and hedging exposure to the U.S. dollar (44%).