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Economic Overview: Tariffs Take a Toll on Growth
The S&P 500 rose 8.23% in the third quarter of 2025 and is up 14.81% on a year-to-date basis. During the third quarter, the Trump administration continued to push new tariffs on the United States largest trading partners. Following the reciprocal tariff announcement in early April, during the third quarter they began to hammer out trade agreements. The administration reached permanent or temporary reduction agreements setting tariffs with China at 10%, Japan 15%, Vietnam 20%, Indonesia 19% and Mexico 25%. Tariffs continued to lead to volatility and uncertainty globally as GDP growth rates fell and core inflation rose. The on again off again tariffs and resulting trade flows have created volatility in the GDP growth numbers and have made the FOMC’ s mission more difficult. The one offset is that through August 2025 the Treasury has collected $165.2 Billion in tariff proceeds, about two-thirds of which has been paid for by American consumers.
Click to read the complete Economic Overview.
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.
