Tariffs Are Back—and So Is Market Volatility

Just when we thought the U.S.-China trade tension was cooling down, 2025 had other plans. On April 4, China fired back at Trump’s new round of tariffs with its own: a sweeping 34% levy on all U.S. goods, plus export curbs on critical rare earth minerals. That’s on top of existing 10–15% tariffs on American agriculture and energy equipment.

Markets reacted like a toddler getting their toy taken away—tantrums across the board. The S&P 500 dropped 4.07%, the Chinese yuan hit a 7-week low, and investors are understandably jittery.

But here's the thing: volatility doesn’t mean panic. It means opportunity if you're strategic.

Why This Trade War Matters for Retail Investors

Let’s break it down.

Tariffs don’t just hurt global supply chains—they change investor behavior. When major economies like the U.S. and China get into a tariff slugfest, multiple asset classes get shaken:

• Stocks: Companies heavily exposed to international trade—think tech, semiconductors, and agriculture—often take the biggest hit.

• Commodities: Higher tariffs on agricultural goods (like soybeans and sorghum) can lower demand and price, hurting U.S. exporters.

• Currencies: As risk sentiment worsens, investors typically flee to “safe haven” currencies like the U.S. dollar or yen, hurting emerging market equities.

If your portfolio isn't designed to adapt to this kind of environment, you're basically playing dodgeball with bricks.

3 Ways to Protect (and Even Profit From) Tariff Turbulence

1. Diversify Across Sectors, Not Just Stocks

This isn’t just about owning a bunch of different companies. When trade wars flare up, sector-specific exposure matters big time.

Industries like defense and energy tend to hold up better during geopolitical tensions. Meanwhile, consumer tech and agriculture can get smoked.

Consider automating part of your portfolio into strategies that dynamically rotate into sectors less affected by tariffs. Surmount strategies can help you do exactly that—without trying to time the market manually.

2. Use Smart Automation to Stay Nimble

Markets move fast. Like, quicker-than-refreshing-Twitter fast. Manual investing just can’t keep up with daily shifts caused by geopolitical news.

That’s why automated strategies, especially ones with built-in rules that adapt to macroeconomic signals (like tariff announcements), can help avoid emotional decisions and keep your portfolio aligned with the trend.

Pro insight: Surmount offers strategies that monitor volatility and shift your exposure accordingly—automatically. So you're not just reacting—you’re positioning.

3. Watch Rare Earths, Semis, and Commodities

With China slapping export controls on rare-earth elements like terbium and gadolinium, sectors like EVs, clean tech, and semiconductors are in the crosshairs.

If you're long on these sectors, dig deeper:

• Which companies have diversified supply chains?

• Who has stockpiled materials already?

• Are there U.S. alternatives to Chinese suppliers?

This is where real research (or following automated strategies that do it for you) pays off.

TL;DR: Trade Wars Are Messy, But Your Portfolio Doesn’t Have to Be

This isn’t the first time the U.S. and China have gone head-to-head. But now, with more data, better automation tools, and smarter investing platforms (shameless plug for Surmount), individual investors can finally fight back with strategy—not guesswork.

If you're still relying on gut feelings and Reddit threads to protect your investments, it's time to level up. Automate your portfolio with proven strategies, stay diversified, and don’t let the headlines drive your decisions.

The information presented is for educational purposes only and not an offer or solicitation for any specific investments. Investments involve risk and are not guaranteed. Consult with a financial adviser before making any investment decisions. Past performance does not guarantee future results.