The Tariff Impact
Financial Planning Investing News
The new tariffs announced by the Trump administration are creating significant uncertainty in markets this week, and it's important to understand what's happening. The scale of these tariffs has surprised many economists and market participants, and we're seeing tariffs on China exceeding 60% and 20% tariffs on many other countries, allies and adversaries alike. This is a major shift, tariffs like this have not been seen in the United States in a hundred years and could have far-reaching consequences for the U.S. and the global economy. These tariffs could dramatically disrupt global trade. U.S. China trade could be severely impacted and exports from other countries to the U.S. could drop significantly. This kind of disruption creates volatility and risks for investors. The economic impact at this point is highly uncertain, as we don't know yet how other countries will retaliate, how businesses will adjust, or how the Federal Reserve will respond to the potential stagflation that could result. It's this uncertainty which is driving market volatility. For investors, the key take-away is increased volatility and the potential for both slower economic growth and higher inflation makes it more important than ever to have a diversified portfolio and solid financial plan. We know that volatility in markets is an unfortunate reality that we have to live with but we can help you navigate this uncertainty and make sure your financial plan is aligned with your goals.