The European Union announced overnight retaliatory tariffs against the United States.
The news came after the Trump administration’s new 25% tariffs on aluminum and steel imports coming into the country took effect at midnight, which could lead to another day of losses on Wall Street.
The EU says its retaliatory tariffs on industrial and agricultural products will go into effect on April 1. These tariffs will cover goods from the US worth $28 billion and include textiles, home appliances, and agricultural goods.
In the end, this could impact the consumer’s wallet. Financial advisors say as people look closely at their investments, they may want to focus on more conservative approaches.
“It’s a delicate balance between trying to grow your money, keep pace with inflation, make sure you’re turning savings into income, doing that in a tax efficient way but also making sure you’re preserving and protecting what you’ve worked so hard for because if the market does fall in value, and who knows maybe you’re retiring sooner rather than later you don’t have the time to make up those losses,” said Nicholas Colantuono, a financial advisor with Johnson Brunetti.
It’s been a bumpy ride on the stock market as of late.
What President Trump’s new tariff announcement means for your wallet
Stocked futures are higher Wednesday following President Trump’s 25% tariffs. This comes after the S&P, the Dow, and Nasdaq all reported losses on Tuesday.
With such volatility in the market, many Americans are concerned about their 401ks. Colantuono told Boston 25 that while this instability isn’t good for the economy, you might not have to worry about your investments yet.
“If you’ve got 10 years, 15 years fantastic keep doing what you’re doing, but if you’re retiring at the end of this year or you’re planning on retiring in the middle of next year or even 2, 3 years from now, it might not be a bad idea to just reassess the way you’re doing things,” Colantuono explained.
Colantuono says it’s always good to have a diversified portfolio.
Investors are going to be closely watching another catalyst today—the Consumer Price Index for February.
This is a developing story. Check back for updates as more information becomes available.
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