Skip to main content
Top Market Takeaways

“Liberation Day” is here. Now what for the economy?

PublishedApr 2, 2025

Global Investment Strategist

    Top Market Takeaways

      Today marks what President Trump has referred to as “Liberation Day.” This afternoon, he is set to announce a new round of tariffs during a press conference in the Rose Garden. Heading into the press conference, there has been a lack of clarity on what the final specifics will be. This uncertainty is reflected in our investment bank's wide range of potential effective tariff rates, as shown in the accompanying chart.

       

      Ultimately, the final decisions will depend on how the Trump administration balances its goals of generating revenue, reducing trade imbalances and implementing "fair" trade policies. Another factor to consider is how pursuing these goals might affect economic growth and whether the administration might relax tough tariff policies if U.S. growth significantly weakens.


      Work with an advisor

      Our advisors can provide ongoing financial advice on how your portfolio can adapt to the changes in the market, your life and your goals.


      Given this uncertainty, what should investors do? While it likely sounds repetitive, diversifying across geographic regions and asset classes remains a key strategy to manage heightened uncertainty. For investors with meaningful exposure to U.S. equities, we would consider diversifying into assets such as international equities, core bonds or gold. Although these asset classes have different return and risk profiles, they have varied return drivers that may reduce exposure to any single economic environment. As we noted yesterday, the first quarter of 2025 demonstrated the benefits of diversification, as most assets we track (aside from U.S. equities) ended the quarter positively, offering balance to global multi-asset portfolios.

       

      We will learn more about the administration's tariff policy direction later today and will return tomorrow to share our latest insights.


      Wide range of tariff estimates


      Note: Current assumes increases of 20% on China, 25% on Mexico & Canada non-USMCA, 25% on steel & aluminum. Sources: Michael Cembalest “Eye on the Market”; Tax Foundation, GS Global Investment Research, J.P. Morgan Investment Bank Global Economics. Data as of March 28, 2025.
      Line chart showing historical U.S effective tax rate from 1900 to 2025 and potential U.S effective tariff rate.



      All market and economic data as of 04/01/25 are sourced from Bloomberg Finance L.P. and FactSet unless otherwise stated.


      Explore ways to invest

      Take control of your finances with $0 commission online trades, intuitive investing tools and a range of advisor services. 


      Vinny Amaru

      Global Investment Strategist

      Vinny Amaru is a Global Investment Strategist, where he collaborates closely with Asset Class Leaders in shaping and communicating the firm's economic and market perspectives. Vinny began his career at J.P. Morgan Private Bank, where he was a memb...

      What to read next

      Get in The Know with our newsletters

      Subscribe to stay informed on the latest investing essentials, market trends and more.