PSA: How should you respond to tariffs?

The Trump Administration has announced tariffs on trade with other countries. While there has been a lot of uncertainty as to how these policies will evolve, it's generally agreed that tariffs can be inflationary, and they have also sparked volatility in the financial markets.  How should you respond to tariffs — as a consumer and an investor?
 
As a consumer, to address potential inflation, find ways to cut back. You also may want to build, or replenish, your emergency fund to help handle price increases in various items, such as car parts. Consider keeping your emergency fund in a low-risk, liquid account.
 
As an investor, try to build and maintain a diversified portfolio. Tariffs will likely hit some industries harder than others, so consider spreading your dollars among an array of stocks, bonds and other securities. Diversification cannot guarantee a profit or protect against a loss, but at any given time, some asset classes may be up, or not hit as hard as others. 
 
Finally, follow a long-term strategy based on your risk tolerance, time horizon and financial goals. You’ll be better equipped to cope with the market gyrations that can result from tariffs — or from any other event.
 
This content was provided by Edward Jones for use by your Edward Jones financial advisor, Andrea Morrison 215 N. Main St. Ste.2 Loganville, PA 17403 717-741-4219
 
Member SIPC