As of March 4, 2025, President Trump has implemented new trade tariffs affecting imports from Canada, Mexico, and China. Here’s a brief overview:
What’s Happening?
- Canada and Mexico: A 25% tariff has been imposed on all imports from these countries, with Canadian energy products facing a 10% tariff.
- China: Tariffs on Chinese goods have increased from 10% to 20%.
Why Were These Tariffs Introduced?
The administration aims to address concerns related to illegal immigration, drug trafficking, and trade imbalances. The tariffs are intended to encourage these nations to take stronger actions on these issues.
Potential Impact on the Markets
Trade tensions can lead to market volatility. For instance, the announcement of these tariffs has already caused slight declines in major stock indices. They can also lead to new inflationary pressures as manufacturers may pass cost increases on to consumers.
What Does This Mean for Your 401(k)?
Market fluctuations are a natural part of investing. While short-term volatility can be concerning, the key to managing risk is to maintain a diversified portfolio. Diversification helps cushion your investments against market swings, keeping your retirement goals on track. With tariffs potentially impacting certain industries more than others, having a mix of stocks, bonds, and other investments can help protect your long-term growth.
A few key things to remember:
✅ Don’t panic. Market swings are normal, and a long-term perspective is key.
✅ Review your allocations. Now is a great time to check in and make sure you’re properly diversified.
✅ Stay the course. Trying to time the market rarely works—sticking to your strategy is usually the smartest move.
If you’re unsure about your current investment mix, reach out to your Francis financial planner. We’re here to help you stay on track for the retirement you envision!
Did You Know?
Your employer sponsors this financial wellness benefit from Francis LLC. The benefit connects you with down-to-earth financial planners who educate and advise on any money matters…without the sales pitch. We are exclusively engaged by employers like yours and have no investment products to sell, so you can feel confident that you will always receive objective advice.
Your financial planner will help you set priorities and achieve your money goals, without judgment or financial jargon. Know that all discussions are kept strictly confidential. This service is offered as an employee benefit with no per-session co-pays, so you can meet with a financial planner as often as you wish. Services are paid by your retirement plan or your employer.
Connecting with a financial planner is easy! Here’s how:
- Visit FrancisWay.com > Services > Participant Portal
- Call (866) 232-6457
Download the free mobile app (Search for Francis LLC)
