Key Messages:

• President Trump has proposed a 10% tariff on US imports from most countries, with steeper tariffs targeting “bad actors” including China (54%), Thailand (36%) and EU (20%).
• While these tariffs are expected to take effect, Trump may adjust or delay them as part of trade negotiations.
• Investors should stay disciplined, adhere to their strategies, and brace for short-term market volatility.

Why Does President Trump Want Tariffs?

Trump views tariffs as a multi-purpose tool to:

• Revive U.S. manufacturing.
• Counter unfair trade practices by other nations.
• Boost tax revenue.
• Pressure countries to address migration and drug trafficking (e.g., fentanyl smuggling).
  Historically, he has used tariffs as leverage in negotiations with Canada, Mexico, and China to secure border control concessions. Despite some progress, he often proceeded with tariffs after delays, suggesting they’re more than just a bargaining chip.

What Can Investors Do?

Market uncertainty is inevitable but manageable. Here’s how investors can respond:

• Stay Long-Term Focused: Historical data shows sticking to a plan drives portfolio growth over time.
• Diversify: A well-balanced portfolio (across equities, fixed income, cash and property asset classes) helps mitigate downside risk during volatile periods.
• Use Dollar-Cost Averaging: This strategy smooths out market fluctuations and capitalizes on dips.
• Build Resilience: Maintain cash reserves and allocate to protective assets like high-quality fixed income for stability.
• Reassess Goals: Consult with us to ensure your portfolio aligns with your objectives.