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Markets reacting to Trump’s tariffs – what you should know

Kevin Linser
by: Kevin Linser3 min read

You might have seen the headlines: new tariffs announced by Donald Trump are shaking up global markets. If you’re feeling a bit uneasy – that’s completely understandable. But as always, a long-term mindset and a diversified portfolio are your best allies in times like these.

As of April 4th 2025

What's been happening in the markets?

So far in 2025, markets have been relatively strong – but recent trade tensions have brought new waves of uncertainty.

  • US tariffs and global reactions
    In recent weeks, US markets have been under pressure following new tariff announcements. Trump’s latest statement fuelled concerns around inflation and a possible economic slowdown, causing a sharp drop in US stocks – which had previously performed strongly in 2024.
  • Impact on Europe
    European stock markets – including Germany, Switzerland, France and Spain – had a strong start into the year. Lower valuations compared to the US, expectations of interest rate cuts, and increased public spending (especially in defence) helped drive growth. However, trade tensions are now also adding pressure on European stocks, causing a decline from recent highs. 
  • Gold hits record highs
    Amid all the uncertainty, gold has climbed to over $3,100 per ounce – underlining its role as a “safe haven” when things get shaky.

What should I do now?

Here's what we always keep in mind at Selma – and what we hope you'll take with you:

  • Diversification is your friend
    Your Selma portfolio is globally diversified across markets and asset classes – including precious metals like gold. This spreads risk and helps you benefit when different parts of the market start to recover.
  • Stay focused on the long term
    Short-term swings are normal. What matters is sticking to your plan and not reacting emotionally – even though it is hard when looking at your own portfolio. Trying to time the market often does not work out.

Remember: Time in the market beats timing the market.

  • Invest regularly
    Keep up your monthly investing habits. It helps smooth out market bumps and, particularly now, as you can buy more when prices dip.
  • Update your profile if anything changed
    Make sure your financial situation, goals and risk tolerance are still up to date. Selma will automatically check if any updates to your strategy are needed. 

👉 Check your investor profile

About the author
Kevin Linser

Kevin Linser

Kevin is a co-founder of Selma Finance. He helps you to get started with Selma and keeps you up to date. Outside the office you can spot him🎿 or 🏃.

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