Nicolai Tangen, the head of the world’s largest sovereign wealth fund, said on Tuesday that tariff-driven inflation is one of the biggest market risks in 2025.

“I don’t think I should be giving any advice to the United States, but if you look at the risks to financial markets, I think inflation is certainly one of them, and all of this,” the CEO of Norges Bank Investment Management said in an interview with CNBC. It’s all driven by tariffs,” World Economic Forum in Davos.

“Many of the proposals the U.S. is proposing right now could be inflationary. They could cause more inflation. The supply of labor could decrease, tariffs could increase — all of these things are driving inflation, so inflation is not Of course. “It’s going to go down,” he said.

Political leaders around the world are nervously watching What are the trade policies? After months of tough rhetoric, newly inaugurated US President Donald Trump is set to speak.

Trump said on Monday that he Consider imposing 25% tariffs on Mexico and CanadaThe U.S.’s two largest trading partners could meet as soon as early February. He had previously Threaten to impose 50%-60% tariffs about Chinese goods, and EU import tariffs Unless the EU increases its purchases of US oil and gas.

Norges Bank’s Tangen also cited key risks facing markets, including rising long-term interest rates, high government debt and geopolitical tensions. As his biggest risk, he pointed to the U.S. stock market’s concentration in large technology companies, which he said has “never been greater.”

However, he said that “purely from a financial perspective”, Trump’s arrival would be “very positive” for many American companies.

“There are a lot of policies that we don’t necessarily agree with, but if we look at it just from a financial perspective, as a financial investor, it’s generally very exciting. You know, more than half of our assets are invested in the United States when we’re with the U.S. We’re definitely seeing a return of that animal spirit when talking to CEOs.”

Tangen leads Norway’s massive sovereign wealth fund, which Announced first half profit Investment last year was 1.48 trillion crowns ($138 billion), driven mainly by investment in technology stocks.