Fear thrives in uncertainty, and lately there’s been no shortage of either—especially when it comes to the markets. President Trump’s tariff policy and its effect on the economy have dominated headlines since it was announced, stirring up understandable concern about what might come next. Our financial advisors are fielding more and more questions like “What will Trump’s tariffs do to the economy?” and “Should I move money out of the stock market?” as many are left wondering how to invest with tariffs now affecting the landscape.

In times like these, it’s helpful to pause, take a step back, and remember that short-term market conditions don’t override long-term strategy. This moment might feel uncertain, but it’s the kind of moment your financial plan was built for—and the kind of environment we’ve helped clients navigate many times before.

Let’s take a look at what the new U.S. tariffs will do to the economy, how different parts of the market may be affected, and what steady, long-term strategic financial planning looks like in a season like this.

Understanding the Stock Market’s Response to the 2025 Trump Tariff Announcement

At the heart of this conversation is the tariff—a tax on imported goods that raises their cost and reshapes global trade dynamics. The goal of the new U.S. tariffs is to make foreign products more expensive, encouraging consumers and businesses to buy domestically produced items instead. While this can help support U.S. manufacturing, it also drives up costs for companies that rely on imported materials—and ultimately, for consumers at the checkout line.

This kind of economic friction often creates ripple effects in the stock market, and that’s exactly what we’ve seen in recent weeks. While the daily swings can feel unsettling, it’s important to remember that tariffs are a long-term strategy, not a short-term fix. They’re designed to address trade imbalances and protect key industries, though the effects may take time to unfold and aren’t without tradeoffs.

What Will Trump’s Tariffs Do to the Economy? Expectations for the Coming Weeks

Based on what we’ve seen so far, our financial advisors anticipate a period of uncertainty—a sort of “plateau”—as the Trump administration’s tariff plans continue to evolve. The details are still shifting as negotiations unfold, and more global trade partners may still respond to the U.S. tariffs in kind. Until those dynamics settle, some level of volatility will likely remain part of the landscape.

How to Invest with Tariffs Affecting the Economy: Keeping Your Plan on Track with Strategic Financial Planning Tactics

Times like these are when a steady, long-term financial plan earns its keep.

Long before market volatility makes headlines, the structure of your portfolio should be designed to withstand economic shifts like the Trump tariff rollout. That means holding the right mix of assets, planning for different types of market environments, and making sure there’s enough built-in flexibility to support you when conditions change.

If you’re deciding how to invest with tariffs now in play, here are three core strategies our financial advisors use to help our clients’ financial plans stay on track through market upheaval.

1. Use Index Investing to Reduce Risk in Volatile Markets

In unpredictable seasons, it helps to stay connected to the broader market, not just one company or one sector. That’s what index investing allows us to do.

When one area of the market struggles, another may be steady—or even growing. By investing in tools like the S&P 500, we spread investments across hundreds of companies in different corners of the economy. This range can help reduce the impact of any single company’s rise or fall so that one bad day—or one disappointing earnings report—doesn’t carry too much weight.

If you’re weighing what to invest in with tariffs shaping market conditions, broad exposure through index funds offers a practical path forward. This approach doesn’t remove risk, but it helps make it more manageable. You’re less likely to see the sharp swings that can come with individual stocks and more likely to experience a steadier path over time.

2. Balance Your Portfolio Through Diversification of Stocks, Bonds, and Assets

Another important strategy for evaluating what to invest in with tariffs at play is diversification. A well-diversified portfolio is one of the most reliable tools for reducing risk, offering a strong defense against market volatility from the 2025 Trump tariff changes.

In the plans we build, diversification means holding a thoughtful mix of investments. That can include different sizes of companies, both in the U.S. and abroad. It also means blending in assets that aren’t tied to the stock market, like bonds, cash, or fixed income instruments. These tend to behave differently when conditions change, and those differences help create stability when some sectors of the market come under stress.

Diversification won’t prevent every bump, but it helps your plan stay balanced. It gives your financial advisor more ways to adjust without needing to overhaul everything, and it gives you a steadier place to stand—even when the headlines are dominated by uncertainty surrounding U.S. tariff policies or global trade relations. 

3. Prepare for Economic Recessions with a Multi-Year Strategic Financial Plan

Another topic that may be appearing in your news feed alongside the Trump tariff updates is the possibility of a recession. The word “recession” can understandably stir up a lot of concern, but part of strategic financial planning is recognizing that recessions are part of a normal economic cycle.

According to the National Bureau of Economic Research (NBER), most recessions last between 10 and 17 months. With that in mind, we take care to design financial plans that aren’t just built for growth—they’re built for staying power. That includes incorporating enough bonds and fixed income to support client needs over several years, not just the span of a typical downturn.

This kind of preparation helps reduce the need for reactive decisions. When a portfolio has access to stable, reliable resources, you don’t have to sell long-term investments at a low point to cover short-term needs. That layer of security in your financial plan can make a meaningful difference in both your outcomes and your peace of mind.

If you’re unsure how to invest with tariffs looming or fear a recession ahead, remember this: breathing room matters. Stability matters. And the right financial plan helps protect both.

Exploring Strategic Opportunities Amid Market Volatility from the U.S. Tariff Policy

Not every response to the current economic climate is about minimizing damage. For some, this moment presents opportunities—especially for investors who are not close to retirement and can think in terms of years, not months.

Here are a few possibilities that may be worth exploring with a financial advisor:

• Invest while prices are temporarily lower. When the stock market drops, it can create opportunities to buy high-quality investments at a lower cost. If you’re deciding what to invest in with tariffs altering market behavior, talk over these options with your financial advisor—for people who aren’t planning to retire soon, putting money to work during a downturn may help support long-term growth.

• Offset gains with tax loss harvesting. If part of your portfolio has dropped in value, you may be able to sell that investment and use the loss to reduce taxes on other gains. This can improve your after-tax return. It’s a detailed process and only makes sense in certain cases, but it’s one of the clearest ways to make something useful out of a short-term dip.

• Rebalance your portfolio to match your goals and risk level. When markets move quickly, your investment mix can shift away from the original plan. Rebalancing helps bring everything back into alignment so your plan stays consistent with your long-term goals and the amount of risk you’re comfortable taking.

• Adjust your sector exposure based on tariff impacts. The 2025 Trump tariffs target imported goods, not services. That means companies in industries like manufacturing may be affected differently than service-based companies, such as utilities or streaming platforms. Understanding that difference may help guide thoughtful adjustments to your investment plan.

These options are most effective when tied to your personal circumstances—your timeline, your income needs, and your vision for the future. That’s why this kind of planning doesn’t happen in isolation. It happens in conversation with a financial advisor who knows your full picture and can help you take thoughtful, informed steps—if and when the time is right.

Let Your Financial Plan Do the Heavy Lifting

You don’t need to become an expert in U.S. tariff policy. You don’t need to watch the S&P every day. You don’t need to figure this out on your own—that’s what your financial advisor is for.

Your role is different, and it’s the part only you can tend to: living the life your plan is built to support, one moment at a time. Give yourself permission to let go of the constant pressure to “stay on top of it all,”  and instead, focus on what’s within your control:

• Turning off the drama of the news
• Taking a walk and enjoying the feeling of sunshine
• Sitting quietly with a book that has nothing to do with markets or policy
• Spending time with someone who helps you feel like yourself
• Taking a deep breath and letting your shoulders drop

Financial plans aren’t designed for calm, ideal conditions. They’re designed for real life—for tariffs, recessions, rising costs, and the uncertainty that comes with change. What we’re seeing in the markets right now isn’t a sign that the plan isn’t working. It’s exactly why the plan exists.

If you would like to talk through what’s happening or to make sure your financial plan is still on track, our team is here. We’re continuing to monitor the changes, and we’re ready to help you respond thoughtfully, if and when a response is needed. And sometimes, the best response is giving yourself permission to exhale.

Morris Financial Concepts is an independent investment advisor registered under the Investment Advisors Act of 1940, as amended. Registration does not imply a certain level of skill or training. More information about Morris Financial Concepts, including our investment strategies, fees, and objectives, can be found in our ADV Part 2 and/or Form CRS, which is available upon request.

Morris Financial Concepts does not provide tax preparation services. Morris Financial Concepts' sister company, Morris Tax Planning, should instead be consulted for tax preparation services.