Wealth strategies update

Investment outlook Q&A – Tariff man & Aust exports, the RBA, $A & gold

This note takes a look at some of the main questions investors have in a simple Q&A format, particularly around tariffs, the RBA and gold.

How long will the threat from Trump’s tariffs last? 

So far, Trump has announced 25% tariffs on Canada and Mexico (then delayed them a month), a 10% tariff on China (which has commenced but may still be changed) and a 25% tariff on steel and aluminium applying to “everybody” which “may go higher”. And he is still vowing “reciprocal tariffs” (“they charge us. We charge them.”), tariffs on the EU and tariffs on other industries like cars, pharmaceuticals and semi-conductors and he is likely to do more after 1 April once his trade reviews are complete. All of these could have various twists and turns subject to deals and Trump’s whims and as such it feels very much like 2018 only this time Trump is moving faster, presumably because the US economy is now stronger, his administration is better organised, he wants revenue to pay for income tax cuts and he wants any pain over by next year’s mid-term elections. Continue reading below.