Monthly Download: March 2025

Negative equity market performance continued in March amid intensifying tariff threats, uncertainty around US tariff policy implementation, higher than expected inflation readings, and weaker US consumer sentiment data. President Trump’s reciprocal tariff plan was announced on April 2nd after US markets closed and included 10% universal base tariffs, 25% tariffs on all automobile imports, and varied reciprocal tax rates across 60 nations with China as high as 34% and the European Union at 20%. The tariff plan is more severe than expected and increases recession risk in the US and likely creates an escalating trade war among US trading partners. That environment is not likely to be a positive one for US businesses and risk assets.