In early April, the U.S. administration unveiled an aggressive new round of tariffs that could reshape global trade dynamics. A standard 10% tariff will now apply to most imports—regardless of origin—unless specific exclusions are made. In addition, a second layer of tariffs, dubbed “reciprocal tariffs,” targets around 60 countries identified as trade offenders based on their policies toward American goods. These factors include high tariffs on U.S. products, currency manipulation, and subsidies for their own industries. The combined impact of these tariffs is striking—ranging from a steep 46% on imports from Vietnam to 20% on goods from the European Union. Countries from Southeast Asia to Europe are affected, and the ripple effects could be significant.

Tariffs Aren’t New—But This Is a Turning Point

While tariffs are grabbing headlines today, they’re nothing new. In fact, they’ve been part of America’s economic strategy for more than a century. Back in 1899, tariffs averaged 29% and were a cornerstone of federal revenue and economic protectionism. But as global trade expanded, those rates steadily declined. In recent years, we’ve seen historically low average tariffs—between 1% and 3%. That’s changing fast. According to research from Yale’s Budget Lab, this latest policy shift could push the average tariff rate above 20%, a level not seen since before World War II. It’s a dramatic reversal, and it signals a broader move toward economic nationalism.

What This Could Mean for Markets and the Economy

So, what’s next? That’s the billion-dollar question. The global economy is complex, and the full impact of these tariffs won’t be clear for some time. Trade partners may retaliate, potentially sparking a broader trade war. Businesses could face rising costs, and supply chains will need to adapt. In the short term, many companies may absorb some of these expenses to avoid passing them on to consumers. But longer-term effects—like reduced hiring or delayed investments—are possible. Inflation may creep higher, and growth could cool. The truth is, no one knows for sure. This is a dynamic situation, and the global economy doesn’t operate on a fixed script.

Control What You Can: Stay Committed to Your Financial Strategy

Here’s the bottom line: headline-driven uncertainty is nothing new. Markets have weathered storms before—tariffs, wars, pandemics—and they’ve always found a path forward. The most effective approach isn’t to react to every twist in policy but to stay grounded in a long-term plan. For investors and law firm owners alike, this means sticking to a diversified portfolio, focusing on your personal and business goals, and not letting short-term noise knock you off course. Let others panic—we stay the course.