04/04/2025
"Liberation Day" Tariffs
On April 2, 2025, President Trump unveiled new tariffs aimed at reshaping international trade and bolstering domestic industries, collectively referred to as the "Liberation Day" tariffs. This includes a 10% Baseline Tariff on all imported goods entering the United States of America starting April 5, 2025.
Short-Term Volatility: Sectors heavily tied to global trade—such as industrials, autos, and technology—are particularly vulnerable to short-term volatility.
Exporters & Multinationals: Higher input costs from tariffs and retaliatory measures can pressure margins, potentially leading to lower profitability for industries like tech, automotive, and industrials.
Inflation Risk: Tariffs on imports typically increase input costs, which can filter into higher consumer prices. If inflation expectations rise, bond yields could follow suit.
Commodity Prices: Trade disruptions can lead to weaker global growth, reducing demand for commodities.
If you have any questions or concerns, please contact your Financial Adviser at RIT Coastal on 1800 635 731