Assessing Market Volatility Following April 2 Tariffs

Recent Market Volatility After April 2 Tariff Announcement 

Welcome to a special market update. I’ll be addressing the recent equity market volatility following President Trump’s much-anticipated press conference last night, where he outlined his strategy for addressing U.S. trade imbalances. This included details of a broad-based rollout of additional tariffs on trading partners. 

The President announced a 10% tariff on all imports from all trading partners.1 Around 60 countries received additional reciprocal tariffs, which included 20% on the European Union, 34% on China, and 24% on Japanese imports.2 

Will These Tariffs Be Permanent or Serve as a First Point for Negotiations?

There are many more details which we can’t go into here, but what remains unknown is whether all these tariffs will remain in place permanently or if they will act as a first point for negotiations. 

We’re listening closely to what U.S. leadership is saying to help determine their intent, approach, and appetite for disruption. Yesterday, President Trump restated his intent to have companies ultimately onshore production with a message to corporations stating that, “If you want your tariff rate to be 0, then build your product right here in America.3” 

Treasury Secretary Scott Bessent made room for some optimism, suggesting to other countries that, “As long as you don’t retaliate, this is the high end of the number,” referring to the rates shared during the press conference.4 

Market Volatility in the Equity Market

This ongoing uncertainty around trade policy has led to volatility in the equity market, which we’re certainly feeling today. The market reached a new all-time high back on February 19 and has since pulled back materially. However, for broader context,5 as of right now we’re still back to levels on the S&P 500 seen just a few months ago in September and we’ve certainly come a long way over this over five-year period.6 

Portfolio Diversification Is Paramount

These two points are great reminders of why diversified and balanced portfolios are often ultimately more resilient than those focused on just asset classes that have performed well in the recent past. 

We know that this market volatility is uncomfortable, but turbulence does often present an opportunity. So, while information and the impact of tariffs remain highly fluid, we encourage everyone to keep focused on the long term as we navigate this market together. If you have any questions, please start a conversation with our team below.