Are You Tariffied? What Investors Should Know About the Market’s Latest Drop

Markets fell sharply following new tariff announcements. Here’s what it means and why there’s no need to panic.

Markets reacted strongly to new tariff announcements from the Trump administration this week, with U.S. and global stocks broadly negative.

Understandably, these headlines are creating anxiety for investors. So let’s break down what happened, what it might mean, and why your long-term plan is built to weather storms like this.

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What Happened?

The administration announced a universal 10% tariff on all imports, excluding Mexico and Canada, and additional “reciprocal” tariffs on nations viewed as treating the U.S. unfairly. According to The Economist, these new policies will raise the average U.S. tariff rate from 2% to nearly 29%—levels not seen since the 19th century. (Source: The Economist, April 3, 2025)

Naturally, this brings up concerns about inflation, global growth, and the potential for recession. But as with all macroeconomic developments, there’s no simple cause-and-effect. Markets are complex, and so are trade policies. Currency movements, interest rates, global supply chains, and political negotiations all interact in ways that can’t be precisely predicted.

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How We See It: 3 Key Takeaways

At Savant, we don’t rely on predictions. We follow an evidence-based investment philosophy designed for moments like these. Here’s what we’re keeping in mind:

1. Markets often overreact in the short term.

Volatility can feed on itself, especially in response to headline-driven news. But history shows that markets tend to stabilize as the bigger picture becomes clearer.

2. Companies and countries adapt.

Tariffs create challenges, but they also spark innovation. Businesses adjust. Supply chains evolve. Trade deals get reworked. The story isn’t finished after one headline.

3. Diversification works.

It’s doing what it’s designed to do, providing balance when different areas of the market move in different directions. While one part of the portfolio may be struggling, others may be holding up better or even performing positively. This is exactly why we invest across asset classes and regions, because no one can predict which areas will lead or lag in any given moment.

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Markets Are Emotional, But You Don’t Have to Be

Market prices aren’t just numbers. And they’re not purely rational.

They reflect a swirling mix of logic, beliefs, data, and human emotion about an uncertain future.

In a way, markets are like a crystal ball, an imperfect snapshot shaped by both insight and anxiety.

The tricky part?

You can only control one side of that equation: your emotions.

When emotions drive the market, investors are faced with two choices:

• Ride the emotional rollercoaster.
• Stay calm, trust the process, and focus on what you can control.

It’s a lot like sailing.

• Chasing every gust of wind forces constant, exhausting course corrections.
• Navigating by the stars keeps you steady and aligned with your destination.

In investing, as in life, there’s always turbulence.

The question is: Will you chase the chaos or follow your plan?

• Control your emotions.
• Trust the process.
• Stay the course.

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Your Plan Was Built for This

While we couldn’t have predicted this exact development, your financial plan was never built on calm markets and smooth sailing. It’s designed with flexibility, resilience, and long-term success in mind.

If you’re asking questions like:

• Can I still retire on schedule?
• Will inflation impact my lifestyle?
• Can I still make that major purchase this year?

We’ve already planned for those. And if anything needs adjusting, we’re here to walk through it with you.

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In Closing: Stay Disciplined, Stay Informed

We understand that days like this can create emotional reactions, and that’s normal. But successful investors don’t make decisions based on headlines. They stick to a strategy that’s grounded in purpose, not panic.

If you’re feeling uncertain or just want to talk, we’re here. Always.

📞 Reach out to your advisor if you have questions or would like to revisit your plan.