Hot Topic - Trade War, Tariffs and Your Portfolio

Trade War: A trade war is an economic conflict between countries, where one country retaliates against another's perceived unfair trading practices by imposing tariffs or other trade restrictions.
Trade wars can disrupt global supply chains, raise costs, and slow economic growth. They are often driven by protectionist policies aimed at shielding domestic industries from foreign competition

Tariffs: Tariffs are taxes imposed on imported goods, designed to make foreign products more expensive and less attractive to consumers.
While tariffs can protect domestic industries, they often lead to higher prices for consumers and can provoke retaliatory measures from other countries. Historically, tariff wars have been mutually destructive, causing economic harm to both sides.

Impact on Your Portfolio: Trade wars and tariffs can significantly impact investment portfolios. Increased tariffs can lead to higher costs for businesses, reduced consumer spending, and slower economic growth. Investors may see volatility in stock markets, with sectors heavily reliant on international trade being particularly affected

Diversification, including allocations to real assets and international investments, can help mitigate these risks.

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