Economic Overview: Tariffs Present Several Challenges to Outlook
Review of 1Q 2025
The S&P 500 fell 4.99% in the first quarter of 2025, which was the worst quarter for stocks since 2022. The technology-heavy Nasdaq fell over 10% as many of last year’s best stocks have underperformed so far in 2025. Newly elected President Donald Trump was sworn in on Jan. 20, and on Feb. 3, he announced his second administration’s first round of tariffs on Canada, Mexico and China related to fentanyl distribution. Days later he removed the tariffs on Mexico and Canada. Since that point, the administration has announced tariffs on Venezuelan oil, critical minerals, steel, aluminum and a 25% tariff on all imported cars and car parts. Trump has also introduced country-specific reciprocal tariffs to target countries that have high tariffs on American products. The initial optimism over Trump’s economic plan has turned to distress as his policies threaten the prosperity of our largest trading partners and allies.
Click to read the complete Economic Overview.
Read this advice for small business owners on navigating the impact of tariffs.
Learn what to do with your personal financial plan through the market ups and downs.
Although the information included in this report has been obtained from sources we believe to be reliable, we do not guarantee its accuracy or completeness. All opinions expressed in this report constitute judgments as of the dates indicated and are subject to change without notice. This report is for informative purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any product or as investment advice for any purpose. Investors should contact their financial advisor prior to making investment decisions. The accuracy of any forecasts is dependent on the occurrence of future events which cannot be assured; therefore, actual results may vary from any forecasts.
