Navigating Market Uncertainty: What Trade Tensions Mean for Your Investments

February 25, 2025

Trade tensions can make headlines—and make investors nervous.But before you let uncertainty shake your confidence, let’s break down the facts and put things in perspective.

What’s Happening?

Tariffs & Trade Battles: The U.S. has placed 25% tariffs on steel and aluminum imports.In response, countries like China have hit back with targeted tariffs on American goods.These moves have sparked concerns about global trade stability.

Markets Have Been Here Before: Investors worried about trade wars during the first Trump administration, yet markets remained strong.In many cases, tariffs were a negotiation tactic to secure new trade agreements.

The Dollar’s Role: A stronger U.S. dollar affects global trade, but the impact of trade policies on currency fluctuations is often short-lived and complex.

Tariffs & the Economy: Despite all the buzz, tariffs contribute just 1-2% to government revenue. Historically, markets have thrived under different trade policies and leadership styles.

What Does This Mean for You?

History shows that despite alarming headlines, markets have managed to generate positive returns during times of heightened trade tensions.The key? Staying focused on a long-term, diversified investment strategy nested within your financial plan rather than reacting to short-term volatility.

At Caliber Wealth, we believe in helping you navigate uncertainty with confidence.Stick to your financial goals, stay diversified, and let’s make informed decisions together.Markets evolve, but smart investing principles remain the same.