Market Commentary - April 2025

Special Edition — Tariffs             

Understanding the New Tariffs and Their Potential Impact on Your Portfolio

As you've likely seen in recent headlines, President Donald Trump announced a series of sweeping tariffs, referred to as "Liberation Day" tariffs, on April 2. These include a universal 10% tariff on all imported goods, with higher rates for specific countries.

These tariffs are intended to address trade imbalances and are calculated based on factors such as trade deficits and export volumes. However, the methodology has been met with criticism for its opacity and inconsistency. In response, several countries have announced retaliatory measures, and the financial markets have reacted strongly to these developments.

While it's too early to predict the full effect these policy changes will have, we want to ensure you feel informed and supported through any potential market fluctuations. At times like these, it’s natural to have questions about how global events may influence your investments, and feelings of uncertainty are valid.

That said, we’d like to offer some historical perspective:

  • Markets are resilient over time: Despite short-term volatility, markets have historically recovered from significant economic shifts including wars, recessions, pandemics, and major policy changes.

  • Supply chains can adapt: Many companies began adjusting their global supply chains after previous tariff rounds. While this takes time, businesses have proven remarkably adaptable.

  • Diversification matters: International stocks have performed well this year, and a weaker dollar can actually benefit certain investments in your portfolio.

Rest assured, we’re closely monitoring ongoing developments and analyzing the potential impact of these tariffs. We also recognize that every investor’s goals and risk tolerance are unique. If you’d like to discuss how these changes may impact your portfolio, or simply talk through the bigger picture, we’re here and happy to connect.

 

From the Investments Desk at MDL Wealth Management and Journey Strategic Wealth

This material is distributed for informational purposes only. Investment Advisory services offered through MDL Wealth Management, a DBA of Journey Strategic Wealth, LLC, a registered investment adviser registered with the U.S. Securities and Exchange Commission ("SEC"). The views expressed are for informational purposes only and do not take into account any individual’s personal, financial, or tax considerations. Opinions expressed are subject to change without notice and are not intended as investment advice. Past performance is no guarantee of future results. Please see Journey Strategic Wealth’s Form ADV Part 2A and Form CRS for additional information.

Securities offered through Purshe Kaplan Sterling Investments, Member FINRA/SIPC, Headquartered at 80 State Street, Albany NY 12207. Purshe Kaplan Sterling Investments and Journey Strategic Wealth d/b/a MDL Wealth Management are not affiliated companies. Not FDIC Insured. Not Bank Guaranteed. May lose value including loss of principal. Not insured by any state or federal agency.

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