What has happened?
On 2 April 2025, US President Donald Trump announced new taxes on goods imported into America. These taxes, known as tariffs, have important effects on various industries and the global economy.
The new tariffs include:
- A 10% tax on all imports into the US
- Higher taxes for certain regions, like 20% for the EU and 54% for China
- A 25% tax on car imports
What does this mean for investors?
When tariffs are announced, markets often become more volatile, which means they can change quickly. This is because investors are trying to figure out how the tariffs will affect companies’ profits and the overall economy.
Our investment expert, Lindsay James, shares her views:
“Trump’s strategy is risky. He is hoping to bring jobs and industry back to the US, but risks causing inflation to rise. The new tariffs could weaken consumer and business confidence and slow down the US economy.
“We are in an uncertain economic period, and this will be reflected by markets for the time being. Investors will need be patient and calm, staying invested for the long-term.”
* Article written by Quilter
