Millions of Americans hold retirement accounts. But the President’s new tariffs could have impacts on later life savings.
President Donald Trump has levied wide-ranging tariffs on nearly every trading nation in the world. But how could this affect your invested pensions?Why It Matters
Millions of Americans hold retirement accounts, helping them get ahead and save for later life. Various plans, such as IRAs and 401(k)s, are invested in stocks, bonds, and target-date funds.
Global stock markets fell on Thursday as investors reacted to Trump’s sweeping announcements on tariffs. Increased tariffs can lead to market volatility and lower returns for pension funds invested in the stock market, which comes at a time when saving for retirement is becoming more difficult than ever.What To Know
„Tariffs can significantly affect investment portfolios and retirement savings by increasing costs for manufacturing, tech, and consumer goods sectors, potentially lowering stock prices and amplifying market volatility, impacting long-term vehicles like 401(k)s and IRAs“, Phillip Battin, president and CEO at Ambassador Wealth Management, told Newsweek.
Companies will face higher costs due to tariffs—whether from more expensive raw materials or restricted access to foreign goods—so they may also see their profit margins shrink.
