April 2025 Market Update

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Tariff Shockwave: Trump’s Global Trade Move Sends Markets Tumbling — What It Means for Investors

In the April 2025 episode of Money Matters, Chad Larson of MLD Wealth addresses a market-shaking announcement: former President Donald Trump’s sweeping global tariffs policy. Dubbed “Liberation Day,” the policy introduces a baseline 10% tariff on all imports to the U.S., with additional reciprocal duties targeting specific nations — China facing a 34% tariff, the EU 20%, and Vietnam a staggering 46%. Larson breaks down the immediate market fallout, sector-specific impacts, and investor strategy in the face of geopolitical instability, supply chain disruption, and rising inflation risk. His message: remain calm, stay disciplined, and prepare for a disruptive — but not necessarily destructive — market phase.

Timestamps

Key Takeaways with Timestamps:

• 00:00 – 01:21
  Trump’s global tariff announcement shakes markets; April 3rd dubbed “Liberation Day.”
• 01:49 – 03:33
  The Big Policy Move:
  A 10% baseline tariff starts April 5. On April 9, reciprocal duties apply to 60 countries (China 34%, EU 20%).
• 03:33 – 05:10
  What is a Tariff?
  Tariffs are taxes on imports; they either increase costs for consumers or reduce margins for producers.
• 05:41 – 07:18
  Market Fallout:
  S&P futures down 2%, 10-year Treasury yields fall, CAD strengthens. Big tech, retail, and manufacturing hit hardest.
• 07:48 – 08:53
  Sector Impacts:
  Tesla down 35% YTD; Nvidia and Alphabet down 18%. Vietnam’s 46% tariff "effectively shuts down" their economy.
• 09:56 – 11:02
  Canada's Position:
  No new tariffs for Canada (yet), but existing ones remain. Canada-US trade surplus and energy dependence provide leverage.
• 11:30 – 13:10
  Volatility Returns:
  VIX and global policy uncertainty indexes spike. After two stable years, markets face renewed turbulence.
• 13:37 – 14:05
  Investor Strategy:
  Focus on whether the situation is disruptive or destructive. Current sentiment leans disruptive — not crisis-level.
• 14:05 – 15:42
  Canada’s Strategic Strengths:
  Car manufacturing, oil exports, and potash production position Canada as a key U.S. trade partner.
• 16:12 – 17:18
  Historical Market Context:
  Since 1980, S&P 500 sees a 10%+ drop more than 50% of the time. Market corrections are normal.
• 17:45 – 18:43
  Retaliation Watch:
  Countries like Brazil, China, Japan, and Canada hint at or prepare countermeasures, though some urge restraint.
• 20:21 – 21:28
  Monetary Policy Impacts:
  Markets expecting rate cuts; Fed may delay without economic weakness. Canada likely holds rates steady.
• 22:03 – 23:11
  Portfolio Positioning:
  Favor sectors like healthcare and utilities; long commodities and infrastructure amid stagflation risk.
• 23:11 – 24:18
  Long-Term Outlook:
  Shift from low-barrier trade to protectionism marks a global turning point. U.S. tariffs now rival Iran’s and Sudan’s.
• 24:52 – 25:55
  Closing Thoughts:
  Investors urged to stay calm, disciplined, and tactical. MLDD clients encouraged to reach out with questions.

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Key Topics Discussed:

The April 2025 edition of Money Matters is dominated by one topic: President Trump’s announcement of sweeping global tariffs, triggering a major market correction and renewed global trade tensions. Host Chad Larson frames this moment as both a disruptive shock and an opportunity, labeling it “Liberation Day.”

Starting April 5, all U.S. trading partners will face a 10% import tariff. Additional reciprocal tariffs begin April 9, with countries like China (34%), EU (20%), and Vietnam (46%) being hardest hit. While Canada and Mexico are spared new tariffs, existing USMCA duties still apply. The market response has been swift and negative: major U.S. indices dropped sharply, particularly tech stocks, oilfield services, and global manufacturers. The Canadian dollar rose, and U.S. treasuries saw a flight-to-safety rally.

Larson emphasizes the impact on global supply chains and warns of inflationary pressures, potential for a global trade war, and ongoing volatility. However, he urges investors not to panic. Instead, they should maintain discipline, focus on value-driven strategies, and lean into sectors more protected from global disruption — such as healthcare, utilities, and infrastructure.

Highlighting Canada’s strategic importance (e.g., in oil, auto, and potash), Larson believes the country is well-positioned despite broader global uncertainties. He sees the tariffs as a strategic negotiation tool by the Trump administration rather than a permanent policy, with eventual walk-backs likely after global pushback.

Larson concludes by reminding investors that market corrections are common and necessary. By staying pragmatic and focused, long-term success is achievable even in turbulent times.

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