Trump’s New Tariffs – How Are You Adjusting Your Investments?

Trump just announced new tariffs on imports from Canada, Mexico, China, and the EU—25% on some goods and 10% on others. The market reaction late Friday was clear: the S&P 500 dropped 0.5%, the Nasdaq dipped 0.3%, and investor sentiment took a hit. What’s even more concerning is that Trump explicitly stated that he doesn’t care about how the stock market reacts.

This move makes little economic sense and raises a lot of questions. Tariffs mean higher costs for imported goods, which could lead to inflationary pressures, supply chain disruptions, and weaker corporate earnings. If inflation ticks up, the Fed might be forced to respond, further complicating the market outlook. It baffles me how this policy made it past every economic advisor in his administration—some of them have to understand the consequences, right?

For those of us investing, this raises key questions:

• Are you selling out of any sectors that will take a hit, such as manufacturing or retail?

• Are you shifting toward more U.S.-centric or intangible goods sectors like tech and software?

• Are you holding more cash in anticipation of volatility or a potential correction?

For my part, my portfolio is mostly in intangible goods that are produced within the U.S., so in theory, I should be okay *knocks on wood*. The only European hardware company I own is ASML, but their machines are absolutely essential and companies opening factories would just have to pay more for them. I’m still considering reallocating some European drug makers and holding some cash on the sidelines.

What’s your plan? Are you making any moves, or just riding this out?