04/04/2025
US tariffs update from Tatton
Trump’s April 2nd tariff “Liberation Day” has now come and gone, and the initial market reaction was both significant and expected.
The impact of tariffs had already been priced in by markets to some degree over the past weeks. Nevertheless, we are seeing US futures point down and European stocks sell off somewhat this morning. Notably, stock reactions in Asia, which is most affected by the tariffs, have been fairly muted. The fixed income market has also reacted, with government bond values rising as the US 10-year government bond yield is coming down. This reaction reflects the market's ongoing struggle to assess the implications of tariffs on trade, domestic jobs, and tax revenue.
We encourage investors to remain calm and trust that our steady and measured approach will once again be the most appropriate approach to weather these fluctuations and continue to meet our investment objectives. We are actively engaging internally and with our selected fund managers to ensure portfolios remain positioned to mitigate the risks and take advantage of opportunities.
We will be releasing a video later today addressing the market reaction and our thinking. This will also be followed by the Tatton Weekly tomorrow.
Tatton WeeklyTariff ‘stick’ to be followed by ‘fiscal’ carrot? 28 March 2025 Read this updateAs most of us are aware, markets have recently been taking one step forward, one step back and this week was no different. Equity markets started with a bit of positivity amid talk that Trump’s Apr...
