April insights: US tariffs & your investments

Published on April 08 2025

Markets have reacted sharply to the recently imposed trade tariffs by the U.S. government. If you’re wondering what this means for your investments, we have you covered.

Let’s take a closer look at what’s happening – and why many investors are choosing to stay invested.

TL;DR:

1. Global markets contracted after Trump announced significant new tariffs
2. Investors are playing it safe – but not all sectors are affected equally
3. Inyova portfolios are positioned for long-term success
4. Staying invested is key to reaching your financial goals over time

Let’s get into it:

1. A series of trade tariffs shakes global markets ⚖️

On 2 April, Donald Trump announced significant new tariffs – including a 54% duty on Chinese imports, a 20% duty on goods from the EU, and a 31% tariff on Swiss imports.

Tariffs are essentially taxes on imported goods. They often lead to higher prices for businesses and consumers, and that’s exactly what markets are now pricing in. China has already retaliated, and the EU is weighing its response.

Stock markets have reacted swiftly. U.S. and tech-heavy indices were hit hardest, whilst sectors like healthcare, utilities, and some renewables were less affected due to their essential nature and more stable demand.

2. What this means for the global economy   🌍

When tariffs go up, so do costs – for businesses and households alike.

In response, companies often delay investments, and consumers hold back on spending. These effects are already being felt, especially in the U.S., where the new tariffs are broad-based. Europe is also expected to grow more slowly, as uncertainty weighs on exports and business investment. 

Meanwhile, long-standing global trade relationships are starting to shift. China, for example, is looking to redirect exports, which could reshape competition and lower prices for certain goods, potentially also affecting European companies.

As is often the case in uncertain situations, fear is gripping the markets as investors react to a worst-case scenario. But worth noting: whilst it’s important to take these risks seriously, it’s also worth remembering that other outcomes are still possible.

Some political observers argue that Trump’s tariffs are being used as a negotiating tactic, not necessarily a long-term policy shift. And whether temporary or not, many companies are already adjusting their strategies to reduce exposure. If political tensions ease or more bilateral resolutions emerge, markets could breathe a sigh of relief – and investor confidence could return more quickly than what markets are currently fearing.

3. Investors turn more cautious – but it depends 🔍

As a result of this uncertainty, many investors are pulling back from high-growth sectors like tech and consumer goods. But not all stocks are affected equally.

There’s been a shift towards companies that offer stability; like some found in the healthcare and utilities sectors. Bond yields are also falling as expectations rise that central banks may cut interest rates to support the economy.

Whilst some European companies could be affected due to their U.S. exposure, not all are in the same boat – especially those with strong regional demand and essential services are poised to withstand, or even benefit from, the situation.

4. Why impact investing can offer stability and direction right now 🌱

Now more than ever, impact investing offers a steady, forward-looking approach that helps navigate volatile markets.

By focusing on companies that contribute to long-term sustainability – such as clean energy, healthcare, and public infrastructure – impact investing supports areas that remain essential. The need for renewable energy and life-saving medicines will persist regardless of the political landscape, so steadfastness in the short term can pay off in the long term.

In addition, businesses driving social and environmental progress tend to be more adaptable to change – and increasingly backed by supportive policies and consumer trends. This means they’re not just aligned with the future, but are increasingly resilient in the present.

In short: impact investing isn’t just about doing good – it’s a smart, stabilising strategy when the world feels uncertain.

Why Inyova portfolios are well positioned:

• Lower exposure to volatile U.S. tech stocks
• Stronger weight on Swiss and European companies
• Diversified across sectors, regions, and impact themes

5. History shows: staying invested wins 🏆

It’s tempting to act when markets get bumpy – but history shows that staying invested is the better strategy.

Some of the strongest returns happen shortly after big drops. Many investors who stayed the course after historic downturns saw their portfolios recover within a couple months – or sooner.

Looking back to the COVID-19 crisis: at the time, markets were pricing in a complete global shutdown and economic collapse. Even then, the market digested the shock within 4-6 weeks – and rebounded far quicker than most expected. It’s a powerful reminder that markets can recover swiftly, even in the face of unprecedented events.

By staying invested, you keep your long-term goals in focus. You also give your portfolio the best chance to benefit when the recovery comes.

At Inyova, we’re monitoring the situation closely, and are already seeing signs of resilience. And parts of the market are withstanding the pressure – especially those focused on long-term value and impact.

Reach out for support

If you have any questions about your portfolio, our Customer Success team is happy to help you. You can email us at [email protected] or call +49 69 120 01237