Navigating Tariff Uncertainty with Discipline Last week President Trump announced a considerable increase in tariffs, imposing a 10% baseline on all imports, including the UK, with specific tariffs of 34% on Chinese goods, and 20% on European Union goods.
As a result, there has been significant global market volatility. US stocks fell by 6.7% last week and by 12.7% for 2025, more than other stock markets, and the UK’s FTSE 100 has also seen steep losses.
What this means for you
The market outlook remains uncertain as tariffs are likely to boost inflation and dampen growth. Further volatility is also expected as countries respond with retaliatory tariffs or seek to negotiate.
These varying inflation levels and trade tariffs will continue to influence market performance across the globe, strengthening the importance of maintaining a well-diversified long-term investment approach. By staying committed to carefully considered plans and not reacting to short-term market swings, investors can navigate through periods of volatility and uncertainty.
A reminder about our approach to investing
Markets have historically shown a long term resilience when it comes to weathering global volatility. So in times of uncertainty, the best plan may often be to do nothing at all – particularly when you are investing for the longer term. The portfolios you’re invested in are diversified, investing across different regions, equities, fixed income and other assets, helping to manage risks from global events.
At the heart of our approach to investing are three key steps that really help at times like these:
Other key measures announced include:
1. Having a plan
Investing without a plan can result in people constantly and unnecessarily reacting to short-term market movements. As one of my clients, you have a plan built on a thorough understanding of your needs, your attitude to risk and your longer-term goals. Downturns come and go. The results of a well-designed financial plan, with funds that match your attitude to risk and regular reviews to keep you on track, can serve you well.
2. Spreading your investments - diversification
The investment philosophy that underpins the advice I give to every client, is based on the importance of spreading money across a number of different types of investments. This is known as diversification. By doing this, you avoid putting all your eggs in one basket and can balance exposure between the higher performing assets and, critically in times of uncertainty, any poorer performing ones. In addition, your attitude to risk has been central in determining how your money is invested, ensuring that your portfolio aligns with your comfort level and long-term goals.
3. Avoiding taking a short-term view
It’s important to take a longer-term view when investing. An investment plan established during more stable times should not be abandoned where there is a potential threat to markets. Let the benefits of diversification run their course.
We will continue to monitor the impact on our Central Investment Proposition, engaging with fund providers to ensure robust risk management strategies are in place.
Here to help
I hope this helps to reassure you, and remember, I’m always here to help.
Financial advice is key, so please do not hesitate to get in contact with any questions or concerns you may have. The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
All details are correct at time of writing (8 April 2025)