How Trump’s Tariffs and Trade Policy Impact Retirement Portfolios
Written by
Chris Adam
Edited by
Zuri Anderson
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If you’re more worried about your retirement money than your death, you’re in good company. According to a study from the Allianz Center for the Future of Retirement, nearly two in three Americans (64%) are more worried about going broke in retirement than dying.
If you’re wondering how President Donald Trump’s tariffs and trade policy impact retirement portfolios, GOBankingRates talked to some finance experts for their perspectives and advice.
Seeing the Bigger Picture
“Overall, there are both negative and positive impacts,” said Melanie Musson, a finance expert with Quote.com. “And with something as important as your retirement financial security, the impact is a big deal.”
According to Musson, tariffs make people anxious, and that’s not good news for investments. She said investments in industries impacted by tariffs will be affected because consumer costs must rise, reducing consumer spending, or business costs must rise, reducing business profits.
“Investments in American manufacturing in specific industries will likely perform well because of tariffs,” Musson said. “While there is uncertainty and concern, you may be able to adjust your portfolio to benefit from tariffs rather than be hurt by them.”
Focusing on Long-Term Strategies
Marcus Sturdivant Sr., managing member of The ABC Squared, said when it comes to how Trump’s tariffs and trade policy impact retirement portfolios, the way they’re allocated, assets, risk tolerance and investment themes will change.
“For the sound investor — looking through the noise and fog, focused on earnings, interest rates, employment levels and blocking out the rhetoric — they’ll be okay if they’re positioned for a long-term retirement,” Sturdivant said. “Maybe increase some cash or income-earning positions, but if you are retired, chances are you are less exposed to the market and in a higher ‘protected’ position with your assets.”
According to Sturdivant, Americans saw the playbook for Trump’s tariffs and trade policy in the outperformance of gold, international stocks, emerging markets and alternatives in 2025 as investors looked to diversify risk outside of the United States.
“If 2026 plays out similarly to 2025 with a choppy, foggy first half and a clearer picture in the second half, I expect those retirees who stay invested and do not make major moves to see market-rate increases in their equities while taking income from their cash positions, allowing their equities time to recover,” Sturdivant said.
Realizing the Psychological Part
Sturdivant added he would be remiss not to mention the psychological part that could play into this.
“For some reason, people think the stock market cares who is in office — here is a nugget, it does not,” Sturdivant added. “Historical returns show 7% to 9% returns over the duration of the stock market, that is red and blue administrations.”
According to Sturdivant, it’s okay to invest in different themes and exclude items for personal reasons, but to include political beliefs will cost you green in the long run.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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