Trump’s New Trade Tariffs: Why This Panic Is Likely Temporary, and What Smart Investors Need to Know

Trade wars and tariff announcements are nothing new. In fact, we’ve been here before.

Back in 2018, during Trump’s first term as President, he launched a major trade war with China. Tariffs were placed on hundreds of billions of dollars’ worth of goods. The headlines were dramatic, markets wobbled, and investors worried. But what happened next? Companies adjusted, global trade continued, and the markets rebounded.

Go back even further to the 1930s and you’ll find the Smoot-Hawley Tariff Act, which raised tariffs on over 20,000 imported goods. It was meant to protect American jobs during the Great Depression, but it made things worse. Countries retaliated, trade slowed, and the global economy suffered.

And in the 1980s, President Ronald Reagan used tariffs to push back against Japanese dominance in electronics and automotive exports. Again, short-term market volatility followed, but long-term market growth continued.

The pattern is always the same: fear hits the markets, smart investors stay calm, and the economy adjusts. The short-term panic fades, but long-term strategies remain effective.

Let’s get to the real question: What should investors do in the face of Trump’s 2025 trade tariffs? 

Whenever economic uncertainty strikes, we see three types of investors:

• Bad investors panic. They sell at the worst time and lock in their losses — at Hoxton Wealth, we do not recommend this!
• Good investors stay calm. They hold steady, knowing that short-term volatility is normal.
• Great investors spot opportunities. They look for undervalued stocks or sectors affected by temporary market fear and buy in while prices are low.

Remember: market volatility often creates opportunity. If a company like Apple sees a temporary dip in its stock price due to tariff headlines—but its core business remains strong—that’s not a risk. That’s a potential bargain.

Right now, the news is loud. Trump’s tariffs are making waves. Financial headlines are dominated by economic uncertainty, investor reactions, and stock market swings.

But like every past trade dispute, this moment will pass. Businesses will find workarounds. Countries will negotiate. Markets will adjust. In a year, this may be a small part of a much bigger story. In five years, it may barely register.

As Warren Buffett famously said, "The stock market is a device for transferring money from the impatient to the patient." That reminder has never been more important.

Zoom out. Look at your long-term plan. Remind yourself why you invested in the first place.

This isn’t the end of the world. It’s not even the start of a new era. It’s just another short-term market event in a long journey of global investing.

At Hoxton Wealth, we help clients focus on the long-term view. We believe in smart, diversified investment strategies that can withstand moments like these. We don’t panic when the market drops. We prepare. We look for opportunity. And we help you make decisions based on strategy, not fear.

Because, as we always say: Bad investors panic.
Good investors do nothing.
Great investors make the most of the moment.

Want to talk about how to position your portfolio in times like this? Get in touch with your adviser at Hoxton Wealth today.