Recent U.S. trade policy changes have reintroduced significant volatility to global markets. President Trump’s newly announced “Liberation Day” tariff package includes a 10% baseline tariff and steeper reciprocal duties on key trading partners, including China. The removal of the de minimis exemption for Chinese imports adds further disruption. While Canada and Mexico are largely shielded due to United States-Mexico-Canada Agreement (USMCA) protections, responses from global players have been swift—Europe has vowed retaliation, China is preparing countermeasures, and countries like Japan and South Korea are calling for negotiation. The immediate result is heightened uncertainty, and uncertainty often fuels market volatility.

Markets have reacted with a pronounced flight to safety. As of this writing (11:45AM EST), U.S. equity markets are down more than 4%, following similar selloffs overseas. Bond markets are rallying, driving the U.S. 10-year Treasury yield below 4.03%. Oil, base metals, and other commodities are selling off on fears of a global slowdown, while the U.S. dollar faces pressure. Meanwhile, traditional safe-haven currencies like the yen and Swiss franc have strengthened. Futures markets are now pricing in close to 80 basis points in Federal Reserve rate cuts by year-end, amid signs of weakening economic data and growing uncertainty.

For investors, this moment underscores the importance of staying grounded. Tariffs have a ripple effect—tightening financial conditions, reducing corporate profit margins, and increasing costs for both businesses and consumers. Sectors tied to global supply chains, such as technology, industrials, autos, and consumer goods, may face increased volatility. On the other hand, more domestically focused sectors like utilities and select areas of healthcare may offer some relative stability. Central banks, too, face a challenging path forward—balancing the risks of slowing growth with the potential for tariff-driven inflation.

Your team at Wealth Avenue is actively monitoring developments with our institutional research partners and remain in regular communication with fund managers to assess whether broad allocation shifts are warranted. While we now have more clarity on tariff policies, the news was not what markets had hoped for. Still, we believe that volatile periods can also offer opportunities for thoughtful planning and portfolio refinement. Below are links to resources from one of our research partners, First Trust—“Tariffs” and “Markets in Perspective”—which offer context on tariffs, market reactions, and the importance of maintaining a long-term investment outlook.

We understand that periods of market decline—especially on days like today—can create real unease and raise questions about what lies ahead. While the headlines may feel overwhelming, we remain focused on maintaining a long-term investment perspective. Challenging markets often present opportunities, especially through systematic savings and disciplined portfolio rebalancing, which can allow investors to purchase more shares at lower prices. If you have questions about how these developments may impact your portfolio—or if you’re curious about potential opportunities—we encourage you to reach out. Our team is here to help you navigate uncertainty with clarity, perspective, and purpose.

Your Team at Wealth Avenue,