Understanding Market Moves: How New Tariffs Affect Your Investments

When global trade headlines dominate the news, it’s natural to wonder what they mean for your investments. Over the weekend, the U.S. government announced plans to impose new tariffs—25% on goods from Mexico and Canada, and 10% on imports from China.

At first, the markets reacted sharply. The S&P 500 dropped 116 points as investors tried to make sense of what these changes could mean for economic growth and global trade. But after Mexico’s president announced plans to negotiate before any new taxes take effect, confidence improved and the market recovered part of its losses, ending the day down just 40 points.

So what does this mean for everyday investors?

• Prices may rise. Tariffs act as taxes on imported goods, which can make everyday items more expensive.

• Businesses may adjust. Companies that depend on global supply chains might see higher costs, while U.S. producers could temporarily benefit.

• The bigger picture. Before the recent announcements, the U.S. economy was strong—low unemployment, steady growth, and stable inflation. The question now is how new trade policies might affect that momentum.

Our Take

While trade negotiations can create short-term volatility, the fundamentals of disciplined investing remain unchanged. Reacting to headlines can lead to costly mistakes, while staying focused on your long-term plan helps you weather short-term noise.

At Pereon Wealth, our role is to help you interpret market shifts within the context of your personal financial strategy—so you can act with clarity, not emotion.

Have questions about how market news might affect your portfolio? Reach out to your Pereon advisor anytime—we’re here to help.