5 min
Navigating Continued Volatility Amid New U.S. Tariff Measures
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As you will no doubt have read, markets have been unsettled by a new set of tariffs announced by U.S. President Donald Trump. As headlines drive short-term market reactions, we want to offer some context and reassurance. Your portfolio is designed with periods like this in mind – diversified, risk-managed, and aligned to your goals.
What’s Happened?
On April 2nd, President Trump introduced a new set of import tariffs, effective from April 5th:
• 10% universal baseline tariff on all imports into the U.S., including the UK • 34% tariff on Chinese goods • 20% tariff on imports from the European Union
These measures aim to bolster U.S. manufacturing. In response:
• China has imposed a 34% counter-tariff on all U.S. imports, effective April 10th • The European Union is preparing countermeasures, with initial tariffs on U.S. goods set for a vote on April 9th • The United Kingdom is consulting with businesses on potential responses, emphasising a measured approach to avoid escalating tensions.
How Have Markets Reacted?
Global Stock Markets Declined: Major indices in the U.S., Europe, and Asia have experienced drops as investors processed the news.
Sector Impact: Industries with global supply chains, such as technology and automotive, have suffered notable declines due to concerns over increased costs and supply disruptions.
What This Means for You
• Diversification Provides Stability: Your portfolio’s global diversification helps mitigate risks associated with any single region.
• Long-Term Focus: While short-term market movements can be unsettling, maintaining a long-term perspective is crucial. Historically, markets have rebounded from similar events, rewarding patient investors.
• Expect Continued Volatility: As this situation develops, market movements – especially around global trade and currency – may remain unpredictable. It’s important to stay calm and focused on your long-term plan, rather than reacting to short-term noise.
Looking Ahead
Country negotiations around tariffs are ongoing, and we anticipate continued market volatility as the situation evolves. Our investment team is monitoring developments closely and keeping in close contact with our third party fund managers who will adjust strategies as needed to protect and grow your investments.
We will keep you updated on significant changes. If you have any questions or concerns, please reach out to your Wealth Planner.
Key Points at a Glance
• U.S. has implemented new tariffs; key trading partners are responding
• Markets have reacted with short-term declines and increased volatility
• Your diversified portfolio is designed to mitigate such market conditions
• Maintaining a long-term investment strategy remains advisable
We understand news like this can cause concern, but please be assured that we remain vigilant and proactive in managing your plan, always with your long-term goals in mind.
Sources:
https://www.theguardian.com/commentisfree/2025/apr/04/britain-donald-trump-tariffs-uk-us
https://www.gov.uk/government/speeches/statement-by-the-trade-secretary-on-us-tariffs
https://www.gov.uk/government/news/uk-seeks-business-views-on-response-to-us-tariffs
https://www.reuters.com/markets/eu-seeks-unity-first-strike-back-trump-tariffs-2025-04-06/
https://www.reuters.com/world/china-impose-tariffs-34-all-us-goods-april-10-2025-04-04/
https://www.reuters.com/world/uk/uk-vows-remain-calm-response-trumps-10-tariffs-2025-04-02/
https://www.reuters.com/world/uk/uk-publishes-list-goods-potential-us-tariff-response-2025-04-03/
https://www.politico.eu/article/uks-starmer-vows-to-shelter-businesses-from-tariff-storm/
https://www.csis.org/analysis/china-and-impact-liberation-day-tariffs
Please note: This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
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