Global markets have responded negatively to the latest escalation in tariff measures, reflecting growing unease over future economic growth. Heightened trade tensions continue to unsettle investors worldwide, as policy uncertainty clouds the outlook.

In the US, the Trump administration’s renewed use of tariffs, initially viewed as a negotiating tactic, has now become a central tool in its efforts to rebalance trade. Following the imposition of steep duties on steel and aluminum imports, which led to a 25% tariff on US goods, these measures have been further extended to cover a wider range of products and countries, including the elimination of exemptions for key trading partners. In retaliation, the European Union announced its first round of counter-tariffs, targeting approximately $23 billion in American exports. The affected goods include almonds, orange juice, poultry, soybeans, steel, aluminium, tobacco, and yachts. The EU’s 25% tariffs are set to take effect on April 15, with additional phases planned for mid-May and December. While EU officials have expressed a preference for a negotiated settlement, they have also signalled that these retaliatory measures will remain in place until a resolution is reached. Notably, US tariffs are now affecting around $420 billion of European exports, which accounts for roughly 70% of total EU trade with the United States.

Across the Pacific, China is significantly increasing its tariffs on American imports in response to Washington’s latest actions. Beijing has announced that its tariff rate will rise from 34% to 84% as of April 10, following the US decision to hike tariffs on Chinese goods to 104%. In addition, China has placed more US firms on its unreliable entity list and tightened export controls. Chinese Premier Li has asserted confidence in the country’s economic resilience, despite the uncertainty, while US Treasury Secretary Bessent warned that the rising tariffs effectively function as a tax on consumers and businesses. He urged China to return to diplomatic talks rather than rely on measures like currency devaluation.

These escalating tensions have shifted market attention from short-term negotiations to the broader, long-term implications of an evolving trade landscape. Investor sentiment has weakened, weighed down by rising costs, disrupted supply chains, and ongoing uncertainty about global trade flows. Trade-sensitive sectors such as industrials and consumer discretionary have borne the brunt of the downturn, while even typically resilient defensive sectors have felt the pressure as markets begin to treat these tariff moves not as temporary skirmishes, but as indicators of a more entrenched policy shift with lasting economic impact.

Disclaimers

Tanager Wealth Management LLP (TWM) is authorised and regulated by the Financial Conduct Authority. Registered office at The White House, Mill Road, Goring on Thames, RG8 9DD. Registered in England and Wales, company number OC377053. TWM is a Registered Investment Adviser and is authorised and regulated by the U.S. Securities and Exchange Commission (CRD# 166084).

Certain investments carry a higher degree of risk than others and are, therefore, unsuitable for some investors. Past performance is not a reliable indicator of future results. The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your initial investment. Where an investment involves exposure to a foreign currency, changes in rates of exchange may cause the value of the investment, and the income from it, to go up or down. Tax treatment depends on an investor’s individual circumstances, and may be subject to change. TWM does not provide tax advice. Investors should consult their own tax advisers in order to understand any applicable tax consequence. To comply with IRS requirements, please be advised that, unless otherwise stated by the sender, any tax advice contained in this report is not intended or written to be used, and cannot be used, by the recipient to avoid any federal tax penalty that may be imposed on the recipient, or to promote, market or recommend to another any referenced entity, investment plan or arrangement.

This is not investment advice. Before making decisions with legal, tax, or accounting ramifications, you should consult appropriate professionals for advice that is specific to your situation. Investors in Mutual Funds and ETFs should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus and, if available, the summary prospectus contain this and other important information about the investment company. You can obtain a prospectus and summary prospectus from your financial representative. Read carefully before investing.

Past performance is not indicative of future results. Therefore, no current or prospective client should assume that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended or undertaken by Tanager Wealth Management LLP) made reference to directly or indirectly by Tanager Wealth Management LLP here, in its Website, or indirectly via a link to an unaffiliated third party web site, will be profitable or equal the corresponding indicated performance level(s).

Neither TWM, third party vendors or data providers make any representations or warranties of any kind with respect to the subject matter herein, whether express or implied. The foregoing parties expressly disclaim any warranties of merchantability, fitness for a particular purpose, accuracy, completeness or non-infringement with respect to the subject matter herein.