Market MakeHer Podcast 83. How Tariffs Actually Impact the Markets
Apr 4, 2025
They unpack the 2025 blanket tariffs and the immediate market shock. They explore how tariffs raise prices, threaten jobs, and create a Fed dilemma between inflation and employment. They trace ripple effects on the dollar, Treasury yields, and investor rate-cut expectations. They review historical trade-war lessons and outline defensive portfolio tactics and sectors that could benefit long term.
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Tariffs Function As An Import Tax
- Tariffs act like a tax on imports, raising costs across raw materials and finished goods.
- Those higher costs usually flow to consumers or squeeze corporate margins, pressuring jobs and growth.
Tariffs Risk Stagflation
- Tariffs can create the stagflation dilemma: rising prices with slowing growth.
- That forces the Fed into a trade-off between fighting inflation and supporting employment.
Dollar Dropped Despite Uncertainty
- Markets didn't follow the usual safe-haven dollar strength; the dollar fell and treasuries rallied.
- Investors feared U.S. growth would weaken and the Fed might cut, reducing dollar returns.